30th Mar 2021. 7.44am
Regency View:
Morning Report – Tuesday 30th March
FTSE to open at 6,771 (35 pts)
US stocks bounced back from fears that a default by hedge fund Archegos Capital Management may have wider contagion than Credit Suisse and Nomura.
Credit Suisse, who loaned equity to Archegos saw its shares plunge 14% yesterday, and Japanese bank Nomura, who also warned of a significant blow related to the fund, saw its shares drop 16%, the biggest sell-off for the company on record.
Our risk barometer is in relatively neutral territory, but it’s worth noting that US 10yr yields have broken to new 12-month highs overnight, and this may raise inflation concerns and weigh on stocks as European trading progresses.
| S&P 500 | -0.09% | Neutral for UK stocks |
| Hang Seng | +1.10% | Bullish for UK stocks |
| Gold | -0.23% | Neutral for UK stocks |
| AUD/JPY | +0.46% | Bullish for UK stocks |
| US 10yr Yield | +2.18% | Bearish for UK stocks |
FTSE futures bounced back during the second half of US trading yesterday – hence this morning’s 35 point opening jump.
Clearly the key focus for the market will be on making a third attempt to break through the 6,800 barrier. Should it do so, then a run towards the January highs at 6,961 looks the most likely scenario – so there’s plenty of upside to play for.
FTSE 100 Daily Rolling Futures – Key Levels
| Final Results |
| Animalcare Grp (ANCR) |
| Barr (A.G.) (BAG) |
| Central Asia (CAML) |
| Chesnara (CSN) |
| Dialight (DIA) |
| Ekf Diagnostics (EKF) |
| Itaconix Plc (ITX) |
| Loopup Group (LOOP) |
| Michelmersh Brick Holdings (MBH) |
| REI (RLE) |
| S & U (SUS) |
| Silence Ther. (SLN) |
| Yu Group (YU.) |
| Interim Results |
| Nanoco (NANO) |
| Trading Announcements |
| 3i Group (III) |
| Pennon (PNN) |
| UK Economic Announcements |
| (09:30) Mortgage Approvals |
| (09:30) M4 Money Supply |
| (09:30) Consumer Credit |
| International Economic Announcements |
| (07:00) Import Price Index (GER) |
| (10:00) Business Climate Indicator (EU) |
| (10:00) Consumer Confidence (EU) |
| (10:00) Economic Sentiment Indicator (EU) |
| (10:00) Services Sentiment (EU) |
| (10:00) Industrial Confidence (EU) |
| (14:00) House Price Index (US) |
| (15:00) Consumer Confidence (US) |
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Disclaimer:
This research is prepared for general information only and should not be construed as any form of investment advice.