Regency View:

Morning Report – Friday 23rd September

FTSE to open at 7,168 (+8 pts)

The Bank of England hiked rates by 0.5% yesterday, taking the base rate to 2.25%, the UK’s highest level since 2008.

While in European consumer confidence fell to a record low compounding concerns that the region’s economy will move into recession this winter.

On Wall Street, stocks edged lower as traders continue to digest the Fed’s hawkish stance to combat inflation and the yield on US 10yr Treasuries surged higher.

Overnight in Asia, stocks have followed Wall Street lower and the Bank of Japan has intervened to prop up the yen for the first time since 1998.

?Risk Barometer Explained

Yesterday’s price action saw the FTSE rally from the bottom of the long-term wedge (converging gold dotted lines) and then give up its gains during afternoon trading.

It remains to be seen if the FTSE can find a foothold at this confluent area of support.

FTSE 100 Daily Rolling Futures – Key Levels