26th Jul 2021. 7.42am
Morning Report – Monday 26th July
FTSE to open at 6,997 (-30 pts)
Chinese stocks have been hit hard overnight as a regulatory clampdown in Beijing spooked investors…
Hong Kong’s Hang Seng index, home to many of China’s largest stocks, tumbled to new lows for the year – it’s biggest daily decline in over eighteen months.
The sell-off was triggered after Beijing barred for-profit tutoring in core school subjects – sending Hong Kong-listed Scholar Education Group shares crashing more than 40% and sparking a strong sell-off across the education and property sectors.
The Asian sell-off overnight has taken the shine off Friday’s strong performance on Wall Street and we’re set for a cautious start to European trading.
|S&P 500||+1.01%||Bullish for UK stocks|
|Hang Seng||-3.54%||Bearish for UK stocks|
|Gold||+0.19%||Bearish for UK stocks|
|AUD/JPY||-0.39%||Bearish for UK stocks|
|US 10yr Yield||-0.64%||Neutral for UK stocks|
We mentioned in Friday’s Morning Report that should the FTSE close above 6,960 the weekly candle chart would form a bullish ‘pin-bar’ or ‘hammer’ candle and that’s exactly what we’ve seen…
Viewing higher timeframes in this way can be a very useful tool for gaining perspective, and with the FTSE’s daily candle chart currently sitting mid-way between key support and key resistance, there’s plenty of value to be had by looking at the bigger picture on the weekly candle chart.
|Science Group (SAG)|
|International Economic Announcements|
|(07:00) Import Price Index (GER)|
|(15:00) New Homes Sales (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.