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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.

?Risk Barometer Explained

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.

FTSE 100 Daily Rolling Futures – Key Levels