26th Nov 2021. 7.33am
Morning Report – Friday 26th November
FTSE to open at 7,120 (-190 pts)
Concerns over a new Covid-19 variant have sent shockwaves through markets overnight…
The variant, found in South Africa is currently known as B.1.1.529, and is said to have far more mutations than previous variants.
It is as yet unknown how dangerous the variant could be, but some scientists have warned that it has the potential to evade immunity like the Beta variant, but with the ability to spread rapidly like the Delta variant.
Oil and stocks have fallen sharply ahead of what is likely to be a volatile start to European trading.
|S&P 500||0.00% (closed)||Neutral for UK stocks|
|Hang Seng||-2.34%||Bearish for UK stocks|
|Gold||+0.78%||Bearish for UK stocks|
|AUD/JPY||-1.47%||Bearish for UK stocks|
|US 10yr Yield||0.00% (closed)||Neutral for UK stocks|
With US markets closed for Thanksgiving, it was no real surprise to see the FTSE print a very small range yesterday.
However, volatility has expanded rapidly overnight and the futures indicate that the FTSE is set to open back below the key support zone.
A failure to rally during the opening rotations would be a very bearish sign and if the market consolidates near its lows this morning, traders should brace themselves for further downside.
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This research is prepared for general information only and should not be construed as any form of investment advice.