9th Jul 2021. 7.20am
Morning Report – Friday 9th July
FTSE to open at 7,059 (+29 pts)
Stocks on both sides of the Atlantic took heavy losses yesterday as traders focused on rising concerns about prospects for the global economy.
This week has seen a sharp move higher in bond prices (inversely related to bond yields which have fallen) – this indicates that the market is pricing in slower growth and lower inflation than previously expected.
Overnight we’ve seen Asian stocks bounce from lows and the Hang Seng looks set to end a run of seven consecutive losing sessions.
|S&P 500||-0.86%||Bearish for UK stocks|
|Hang Seng||+1.01%||Bullish for UK stocks|
|Gold||-0.09%||Neutral for UK stocks|
|AUD/JPY||+0.21%||Bullish for UK stocks|
|US 10yr Yield||-2.01%||Bearish for UK stocks|
After a week of toying with resistance, the FTSE broke decisively lower yesterday.
While prices found some support at 7,000, short-term momentum is firmly in favour of the bears and we would expect today’s bounce on the futures to be sold into.
|Mountview Est. (MTVW)|
|UK Economic Announcements|
|(07:00) Industrial Production|
|(07:00) Index of Services|
|(07:00) Manufacturing Production|
|(07:00) Balance of Trade|
|(07:00) Gross Domestic Product|
|International Economic Announcements|
|(15:00) Wholesales Inventories (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.