16th Aug 2021. 7.46am
Regency View:
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.
FTSE 100 Daily Rolling Futures – Key Levels
| Final Results |
| Goodwin (GDWN) |
| International Economic Announcements |
| (07:00) Wholesale Price Index (GER) |
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Disclaimer:
This research is prepared for general information only and should not be construed as any form of investment advice.