28th Feb 2022. 7.46am
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%.
|S&P 500||+2.24%||Bullish for UK stocks|
|Hang Seng||-0.48%||Bearish for UK stocks|
|Gold||+0.48%||Bearish for UK stocks|
|AUD/JPY||-0.51%||Bearish for UK stocks|
|US 10yr Yield||-65pts||Bullish for UK stocks|
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.
|International Economic Announcements|
|14:45 (US) Chicago Purchasing Managers’ Index (Feb)|
|15:30 (US) Dallas Fed Manufacturing Business Index (Feb)|
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This research is prepared for general information only and should not be construed as any form of investment advice.