01.05.2020 FTSE 100 Daily Analysis

01.05.2020 FTSE 100 Daily Analysis

The FTSE 100 ended the month of April with major losses. This was after showing promising signs of recovery earlier on. This was it's worst daily drop in the entire month of April. It closed at £5897.91, more than 100 points lower from it's support of £6000.The reason for this fall came after it's largest company, The Royal Dutch Shell company slashed dividends for the first time since the Second world war. This comes after a troubled season where oil prices have been going down to new lows. As of the moment Shell company is no longer the largest company on the FTSE 100 stock by market cap after being overtaken by AstraZeneca. Also, the European Central Bank yesterday made a decision to leave interest rates and its bond buying programme on hold after showing data that the Eurozone had shrank in its fastest rate on record in the first quarter. The UK will be releasing their manufacturing PMI(Purchasing Managers Index) figures later today and it is the most awaited event in the market today since it's released at the beginning of the month.Hopefully it should be greater than forecasted which should show that the economy is healthy.