06.05.2020 FTSE 100 Daily Analysis

06.05.2020 FTSE 100 Daily Analysis

Meanwhile, in the UK, the construction PMI which is the index based on surveyed purchasing managers in the construction industry was released and it was less than the forecasted. The numbers were 8.2 in comparison to the 21.5 forecasted. This is the lowest it's been in ages and typically if it falls below 50 it shows the economy is shrinking. As a leading indicator of economic health, falling short of the forecast makes the British currency weaker but investors are maintaining calmness as can be seen by the value of the ındex which is currently trading at £5885.97 as compared to it's the opening value of £5849.42. Technically the FTSE 100 investors are in what we call "beaten until can't be hurt anymore". At this point, the market and the index need something really big to throw off the balance as can be seen by the reaction to the PMI report response.