Regency View:

Morning Report – Monday 28th February

FTSE to open at 7,418 (-71 pts)

From the ramping up of nuclear rhetoric from Russia, to the EU’s decision to fund Ukraine’s military defenses, it’s been a weekend of newflow the likes of which we’ve not seen in a generation.

On the markets, those who participated in Friday’s bounce-back rally and chose to hold over the weekend might be regretting their decision as futures in Europe and the US are pricing-in a swift drop at the open.

At the stock level, we’ll be keeping a close eye on BP who were forced to sell their 20% stake in Russia’s Rosneft – a move which should see BP’s profits drop by around 20%.

?Risk Barometer Explained

Volatility has increased significantly since the Russian invasion as the market frantically tries to ‘price-in’ factors that are changing on a hour-by-hour basis.

Friday’s price action saw a strong rally from the long-term support area that we identified last week, but the futures have erased more than half of Friday’s gains as we head into the open.

FTSE 100 Daily Rolling Futures – Key Levels