12th May 2022. 7.43am
Morning Report – Thursday 12th May
FTSE to open at 7,229 (-119 pts)
Yesterday’s stubbornly high US inflation data prompted a further sell-off in US stocks…
Headline US consumer prices rose 8.3% for the 12 months to April, slower than the 8.5% pace of a month earlier, but higher than market forecasts for 8.1% – prompting a -1.65% drop in the S&P 500.
Overnight, Asian stocks have mirrored the losses on Wall Street with the Hang Seng down more than -2% and the Nikkei 225 currently -1.77%.
This morning’s UK GDP number saw the UK economy shrink for the first time this year – output declined 0.1% from February compared with a forecast for no change.
|S&P 500||-1.65%||Bearish for UK stocks|
|Hang Seng||-2.09%||Bearish for UK stocks|
|Gold||-0.05%||Neutral for UK stocks|
|AUD/JPY||-1.06%||Bearish for UK stocks|
|US 10yr Yield||-67pts||Bullish for UK stocks|
Yesterday’s price action saw the FTSE futures close well-below the cash market close – forming a bearish ‘pin-bar’ candle.
This pattern signals that we could see some downside continuation during today’s session.
|Grainger plc (GRI)|
|Balfour Beatty (BBY)|
|Interim Management Statement|
|Hargreaves Lansdown (HL.)|
|UK Economic Announcements|
|(06:00) Gross Domestic Product (QoQ)(Q1) PREL|
|International Economic Announcements|
|(12:30) Initial Jobless Claims 4-week average (May 6) (US)|
|(12:30) Producer Price Index ex Food & Energy (YoY)(Apr) (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.