12th Jul 2021. 7.45am
Morning Report – Monday 12th July
FTSE to open at 7,108 (-13 pts)
Asian stocks have enjoyed a relief-rally overnight as China’s State Council said the country’s central bank might cut the reserve requirement ratio (RRR) in order to stimulate the economy.
The Asian rally, along with a strong performance from U.S. stocks on Friday has created a bullish backdrop to the start of today’s European trading.
Looking ahead this week, we have U.S. inflation data on Tuesday ahead of Fed Chair Jerome Powell’s testimony on Wednesday. We also have the start of U.S. corporate earnings season with JP Morgan, Goldman, Citigroup and Wells Fargo among those reporting.
|S&P 500||-0.63%||Bearish for UK stocks|
|Hang Seng||-0.79%||Bearish for UK stocks|
|Gold||-0.16%||Neutral for UK stocks|
|AUD/JPY||+0.45%||Bullish for UK stocks|
|US 10yr Yield||+43pts||Bearish for UK stocks|
The FTSE respected 7,000 support on Friday – a support area which represents a confluent zone between the ascending trendline (gold dotted line), a horizontal level and a psychologically significant price point.
With prices trading back at the mid-range area between support at 7,000 and resistance at 7,167, we are in coin toss territory.
|Hill & Smith (HILS)|
|Balfour Beatty (BBY)|
|National Express (NEX)|
|Just Group (JUST)|
|Secure Income Reit (SIR)|
|Volution Group PLS (FAN)|
|UK Economic Announcements|
|(00:01) RICS Housing Market Survey|
|(07:00) Industrial Production|
|(07:00) Manufacturing Production|
|(07:00) Balance of Trade|
|(07:00) Gross Domestic Product|
|(07:00) Index of Services|
|International Economic Announcements|
|(12:45) ECB Interest Rate (EU)|
|(13:30) Continuing Claims (US)|
|(13:30) Initial Jobless Claims (US)|
|(13:30) Consumer Price Index (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.