30th Jul 2021. 7.41am
Morning Report – Friday 30th July
FTSE to open at 7,025 (-53 pts)
The S&P 500 index hit another record high yesterday as weaker than expected US growth data increased the probability of the Fed maintaining its stimulus for longer.
However, it is important to note that whilst the S&P hit a record high, it failed to post a record close – indicating a lack of conviction behind the breakout.
In Asia, the Chinese sell-off resumed with Hong Kong’s Hang Seng Index set for its worst month since March 2020.
|S&P 500||+0.42%||Bullish for UK stocks|
|Hang Seng||-2.01%||Bearish for UK stocks|
|Gold||-0.03%||Neutral for UK stocks|
|AUD/JPY||-0.05%||Neutral for UK stocks|
|US 10yr Yield||+3.45%||Bullish for UK stocks|
The FTSE broke out above the range which started as an inside day pattern and evolved into a bullish fakeout pattern throughout the week.
Yesterday’s breakout has opened the door for a retest of the major resistance zone which starts at 7,167 and ends at 7,219 (see chart below).
However, this morning’s price action has seen the futures retest the top of the range – an area that we’d expect to provide support moving forward.
|International Airlines (IAG)|
|Intertek Group (ITRK)|
|Jupiter Fund Management (JUP)|
|Natwest Grp (NWG)|
|Paragon Group (PAG)|
|Yamana Gold (AUY)|
|Interim management statement|
|International Economic Announcements|
|(07:00) GDP (Preliminary) (GER)|
|(10:00) Unemployment Rate (EU)|
|(10:00) GDP (Preliminary) (EU)|
|(13:30) Personal Consumption Expenditures (US)|
|(13:30) Personal Spending (US)|
|(13:30) Personal Income (US)|
|(14:45) Chicago PMI (US)|
|(15:00) U. of Michigan Confidence (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.