20th May 2022. 7.44am
Regency View:
Morning Report – Friday 20th May
FTSE to open at 7,368 (+65 pts)
Stocks on Wall Street continued to slide yesterday, but did close off of their intra-day lows as buyers stepped in on a retest of last week’s lows.
Overnight in Asia, the Hang Seng has rallied after China cut its five-year loan prime rate (LPR) by 15 basis points in an attempt to boost its housing market.
This morning’s UK retail sales showed less of a contraction than the market had expected, dropping -4.9% in April year-on-year compared to -7.2% expected.
However, UK consumer confidence index fell 2 percentage points to minus 40 in May, its lowest since records began in 1974.
| S&P 500 | -0.58% | Bearish for UK stocks |
| Hang Seng | +2.60% | Bullish for UK stocks |
| Gold | +0.30% | Bearish for UK stocks |
| AUD/JPY | -0.03% | Neutral for UK stocks |
| US 10yr Yield | -45pts | Bullish for UK stocks |
Yesterday’s price action saw the FTSE come close to re-testing the May swing lows at 7,157 before mounting a relief rally which saw the market close some distance from its intra-day lows.
This long-tailed candle is a small bullish sign which may mark a short-term inflection point.
FTSE 100 Daily Rolling Futures – Key Levels
| Final Results |
| Investec (INVP) |
| National Grid (NG.) |
| Qinetiq (QQ.) |
| Royal Mail (RMG) |
| Q1 Results |
| Ab Ignitis. S (IGN) |
| UK Economic Announcements |
| (06:00) Retail Sales (Apr) |
| International Economic Announcements |
| (14:00) Consumer Confidence(May) PREL (EU) |
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Disclaimer:
This research is prepared for general information only and should not be construed as any form of investment advice.