25th Apr 2022. 7.46am
Morning Report – Monday 25th April
FTSE to open at 7,403 (-119 pts)
French incumbent president Emmanuel Macron is to be re-elected for a second term after defeating his far-right rival Marine Le Pen in Sunday’s run-off – the markets ‘priced-in’ this win on Friday with the euro rallying 95pts against the pound.
While Asian trading has seen stocks mirror Friday’s heavy losses on Wall Street, caused by the anticipation of aggressive monetary tightening from the Fed.
Looking ahead this week, we have another raft of inflation numbers, this time from eurozone countries. We also have GDP estimates from the US, Korea, Germany and eurozone, along with an interest rate decision from the Bank of Japan.
|S&P 500||-2.77%||Bearish for UK stocks|
|Hang Seng||-3.50%||Bearish for UK stocks|
|Gold||-0.90%||Bullish for UK stocks|
|AUD/JPY||-1.97%||Bearish for UK stocks|
|US 10yr Yield||-10pts||Neutral for UK stocks|
Friday’s price action saw the FTSE fail to hold onto its early gains and selling pressure accelerated into the closing bell – causing the index the slice through multiple levels of support.
The selling pressure have continued during the early hours, and the cash market is set to open below support (see chart).
Short-term momentum now firmly favours the bears.
|Frenkel Topping (FEN)|
|Audioboom Grp. (BOOM)|
|Arecor Therape (AREC)|
|International Economic Announcements|
|(15:00) BoC’s Governor Macklem speech (CAD)|
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This research is prepared for general information only and should not be construed as any form of investment advice.