Regency View:

Morning Report – Thursday 1st July

FTSE to open at 7,073 (+36 pts)

We continue to see a disconnect between Wall Street and the rest of the world, as the S&P edged to another high yesterday with Asia and Europe weakening.

This week’s PMI’s from Asia signal that rising costs and the COVID-19 delta variant are having a negative impact on Asia’s factory activity. Manufacturing grew at a slower pace in China and Japan, while activity shrank in Vietnam, Malaysia and India.

?Risk Barometer Explained

The FTSE didn’t quite test the 7,000 that we’d been targeting, but it got close and than rallied from lows – forming a bullish long-tailed candle.

Should the market break above yesterday’s highs during the opening rotations, it should set the tone for a strong session.

FTSE 100 Daily Rolling Futures – Key Levels