6th Aug 2021. 7.24am
Morning Report – Friday 6th August
FTSE to open at 7,123 (+3 pts)
The Bank of England (BoE) took a more hawkish tone in yesterday’s monetary policy summary…
With inflation above target, the central bank said “some modest tightening of monetary policy is likely to be necessary” – economists now expect the first rise in UK interest rates to come next year.
Sterling rallied against the euro and the U.S. dollar, as traders began to price-in the BoE acting faster than the ECB and Fed to normalise monetary policy.
All eyes will be on today’s key U.S. employment data, Regency members will receive our Non-Farm Payrolls Preview later this morning.
|S&P 500||+0.60%||Bullish for UK stocks|
|Hang Seng||-0.03%||Neutral for UK stocks|
|Gold||-0.19%||Bullish for UK stocks|
|AUD/JPY||+0.07%||Neutral for UK stocks|
|US 10yr Yield||+3.42%||Bullish for UK stocks|
Yesterday’s price action saw the FTSE bounce from short-term support at 7,093 – maintaining the markets bullish structure.
Whether we will see a test of the major resistance zone at 7,167-7,219 prior to the weekend remains to be seen, but the FTSE is on track to post its strongest weekly gains since mid-June.
|Hikma Pharmaceuticals (HIK)|
|Renewables Infrastructure Group (TRIG)|
|UK Economic Announcements|
|(08:30) Halifax House Price Index|
|International Economic Announcements|
|(07:00) Industrial Production (GER)|
|(13:30) Unemployment Rate (US)|
|(13:30) Non-Farm Payrolls (US)|
|(15:00) Wholesales Inventories (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.