16th Aug 2021. 7.46am
Morning Report – Monday 16th August
FTSE to open at 7,174 (-44pts)
We’ve seen a raft of weak economic data from China overnight – fueling fears that the global recovery is losing momentum…
Chinese industrial production increased 6.4% year-on-year in July, well below analysts expectations of 7.8%. Chinese retail sales also disappointed – increasing 8.5% in July from a year ago, much lower than the 11.5% predicted.
Higher input costs, supply bottlenecks, the rapid spread of the Covid-19 Delta variant and extreme weather conditions are all factors as to why Chinese growth metrics are cooling.
|S&P 500||+0.16%||Bullish for UK stocks|
|Hang Seng||-1.25%||Bearish for UK stocks|
|Gold||-0.26%||Bullish for UK stocks|
|AUD/JPY||+0.56%||Bearish for UK stocks|
|US 10yr Yield||-5.67%||Bearish for UK stocks|
After holding just beneath resistance and forming a small ‘doji’ candle on Friday, the FTSE futures have broken lower in early trading – confirming the market’s failure at resistance.
Prices are now trading back at the ascending trendline and price action at today’s open will be crucial in determining whether the pullback represents a buying opportunity or confirms a short-term top is in place.
|International Economic Announcements|
|(07:00) Wholesale Price Index (GER)|
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This research is prepared for general information only and should not be construed as any form of investment advice.