17th Jun 2021. 7.46am
Morning Report – Thursday 17th June
FTSE to open at 7,138 (-46 pts)
US stocks beat a hasty retreat from all-time highs as the Federal Reserve brought forward plans for monetary tightening.
The US central bank upped its economic projections to factor in faster growth and higher inflation this year – penciling in two rate hikes in 2023 – sending stocks lower and the yield on the US 10yr surging higher.
Overnight, Asian stocks have fought back from early loses but there remains a bearish feel to our Risk Barometer and European stocks are called lower at the open.
|S&P 500||-0.54%||Bearish for UK stocks|
|Hang Seng||-0.11%||Bearish for UK stocks|
|Gold||+0.17%||Bearish for UK stocks|
|AUD/JPY||+0.16%||Bullish for UK stocks|
|US 10yr Yield||+5.70%||Bearish for UK stocks|
After a strong start to yesterday’s session which saw the FTSE touch the Feb 2020 swing lows at 7,216, the market fell back to close on intra-day lows – forming a bearish reversal candle.
This failure at resistance should setup a retest of the ascending trendline (gold dotted line) at the very least.
|NextEnergy Solar (NESF)|
|Open Orphan (ORPH)|
|Brown Group (BWNG)|
|International Economic Announcements|
|(10:00) Consumer Price Index (EU)|
|(13:30) Continuing Claims (US)|
|(13:30) Initial Jobless Claims (US)|
|(13:30) Philadelphia Fed Index (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.