16th May 2022. 7.47am
Morning Report – Monday 16th May
FTSE to open at 7,379 (-39 pts)
Stocks on Wall-Street surged higher on Friday – lead by gains in large-cap tech.
Despite Friday’s gains, the S&P 500 and the Nasdaq posted their sixth consecutive weekly loss – the longest losing streak in over a decade for both indices.
Overnight in Asia, its been a quiet start to the week despite data showing that China’s economic activity contracted sharply in April due to Beijing’s ‘zero-Covid’ policy.
Looking ahead this week, the key economic event is the publication of the ECB’s minutes from its last meeting on Thursday.
While on the corporate earnings front, we have trading updates from budget airlines EasyJet and Ryanair which will give an insight into the strength of demand for flying going into the peak summer period.
|S&P 500||+2.39%||Bullish for UK stocks|
|Hang Seng||+0.07%||Neutral for UK stocks|
|Gold||-0.29%||Bullish for UK stocks|
|AUD/JPY||-0.88%||Bearish for UK stocks|
|US 10yr Yield||+67pts||Bearish for UK stocks|
Friday’s price action saw the FTSE break and close decisively higher – changing the short-term momentum dynamics of the market from bearish to bullish.
Today’s price action needs to consolidate Friday’s gains in order to setup a potential retest of the early-May swing highs.
|UK Economic Announcements|
|(23:00) ILO Unemployment Rate (3M)(Mar)|
|(23:00) International Ec announcements|
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This research is prepared for general information only and should not be construed as any form of investment advice.