15th Feb 2021. 10.47am
Morning Report – Monday 15th February
FTSE 100 set to open 52 points higher at 6,642
European equities look set for a bullish open as Asian indices hit new highs overnight…
Japan’s Nikkei 225 index climbed 1.9%, hitting the 30,000 point level for the first time in over three decades. While Hong Kong’s Hang Seng index continued its strong run of late.
The move in Asia comes on the back of a strong close to US trading on Friday and it indicates that the ‘reflation trade’ is gathering steam – led by the global vaccine rollout and hopes of massive fiscal spending under U.S. President Joe Biden.
We can see from the risk barometer below that today’s bullish open is based on solid foundations across the key asset classes.
|S&P 500||+0.27%||Bullish for UK stocks|
|Hang Seng||+0.45%||Bullish for UK stocks|
|Gold||-0.34%||Neutral for UK stocks|
|AUD/JPY||+0.40%||Bullish for UK stocks|
|US 10yr Yield||+4%||Bullish for UK stocks|
The FTSE futures have finally broken out of the tight trading range which has been in place since the start of February.
We would now expect to see a period of trending price action higher this week, with the top of the range at 6,570 to providing support moving forward.
There is an interior level of resistance at 6,678, but given the momentum we’re seeing across other global equities indices, we’d expect the FTSE to break through this level.
|City Lon Inv (CLIG)|
|Grit Real Est. (GR1T)|
|Grainger plc (GRI)|
|Schroder UK Mid & Small Cap Fund (SCP)|
|Special Ex-Dividend Date|
|International Economic Announcements|
|(10:00) GDP (Preliminary) (EU)|
|(10:00) Balance of Trade (EU)|