18th Feb 2021. 7.46am
Regency View:
Morning Report – Thursday 18th February
FTSE to open at 6,697 (-14 pts)
Our risk barometer (below) indicates a bearish to neutral opening for European equities and this is also reflected in today’s FTSE futures.
Asian stocks look to have ended their run of five consecutive positive sessions, and a pullback of some sort was inevitable as traders take profits off the table.
In the US, a strong set of retail sales yesterday saw the S&P erase almost all of its losses into the closing bell – forming a bullish hammer candle in the process. We’ll be watching to see if US stocks can once again be a positive catalyst for their European peers.
| S&P 500 | -0.03% | Neutral for UK stocks |
| Hang Seng | -1.24% | Bearish for UK stocks |
| Gold | +0.33% | Bearish for UK stocks |
| AUD/JPY | +0.06% | Neutral for UK stocks |
| US 10yr Yield | +0.13% | Neutral for UK stocks |
The FTSE’s technical backdrop remains bullish despite mild weakness creeping in during the last two sesssions.
A pause in the form of a pullback or consolidation is welcomed, we just have to be wary of increasing downside momentum. So far, prices look to be making an orderly retracement in the form of a small descending channel.
We’re set to open just below yesterday’s lows at 6,700. A quick fightback above this level would set a bullish tone for the morning. However, if we gather downside momentum below 6,700, we’ll look to increase our short exposure.
FTSE 100 Daily Rolling Futures – Key Levels
| Final Results |
| Barclays (BARC) |
| Indivior (INDV) |
| Primary Health (PHP) |
| Smith & Nephew (SN.) |
| Interim Results |
| Hays (HAS) |
| Wilmington (WIL) |
| Q4 Results |
| Smith & Nephew (SN.) |
| International Economic Announcements |
| (13:30) Initial Jobless Claims (US) |
| (13:30) Import and Export Price Indices (US) |
| (13:30) Philadelphia Fed Index (US) |
| (13:30) Housing Starts (US) |
| (13:30) Building Permits (US) |
| (13:30) Continuing Claims (US) |
| (15:30) Crude Oil Inventories (US) |
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Disclaimer:
This research is prepared for general information only and should not be construed as any form of investment advice.