16th Jun 2022. 7.46am
Morning Report – Thursday 16th June
FTSE to open at 7,240 (-33 pts)
The Fed made its largest rate hike since 1994 yesterday, upping its benchmark policy rate by 0.75 percentage points to combat accelerating inflation.
Whilst tightening monetary policy is typically bearish for stocks, Wall Street rallied yesterday as Fed Chair Jay Powell said large rate rises would not be common in his press conference.
All eyes will now be on the Bank of England with Governor Andrew Bailey set to announce a fifth consecutive rate hike.
|S&P 500||+1.46%||Bullish for UK stocks|
|Hang Seng||-1.29%||Bearish for UK stocks|
|Gold||-0.09%||Neutral for UK stocks|
|AUD/JPY||+0.35%||Bullish for UK stocks|
|US 10yr Yield||-166pts||Bullish for UK stocks|
The FTSE put in a strong thrust higher yesterday following Tuesday’s bounce from support.
For a bullish scenario to develop, the FTSE will need to at least hold near the top quartile of yesterday’s range.
|UK Economic Announcements|
|(11:00) Bank of England Minutes|
|(11:00) BoE Asset Purchase Facility|
|(11:00) BoE Interest Rate Decision|
|(11:00) Monetary Policy Summary|
|International Economic Announcements|
|(12:30) US Initial Jobless Claims (Jun 10) (USD)|
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This research is prepared for general information only and should not be construed as any form of investment advice.