5th Aug 2022. 7.34am
Morning Report – Friday 5th August
FTSE to open at 7,462 (+14 pts)
The Bank of England hiked rates by 0.5 percentage points to 1.75% yesterday…
Whilst the rate hike was in-line with analyst forecasts, the Central Bank’s grim economic forecast surprised the market by indicating that it now expects a longer and deeper recession than it forecast in May.
On Wall Street, stocks had a muted session as US jobless claims hit six-month highs as labour demand cools.
And overnight in Asia, the Hang Seng and Nikkei have made modest gains ahead of this afternoon’s July Non-Farm Payrolls.
|S&P 500||-0.08%||Neutral for UK stocks|
|Hang Seng||+0.28%||Bullish for UK stocks|
|Gold||-0.07%||Neutral for UK stocks|
|AUD/JPY||+0.29%||Bullish for UK stocks|
|US 10yr Yield||-11pts||Neutral for UK stocks|
Yesterday’s price action saw the FTSE break above Monday’s swing highs only to retreat and close near intra-day lows – forming a small bearish reversal candle.
A break below yesterday’s low would likely trigger a retest of support at 7,361.
|Hargreaves Lansdown (HL.)|
|Pets At Home (PETS)|
|UK Economic Announcements|
|(07:00) Halifax House Price Index|
|International Economic Announcements|
|(07:00) Industrial Production (GER)|
|(13:30) Unemployment Rate (US)|
|(13:30) Non-Farm Payrolls (US)|
|(20:00) Consumer Credit (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.