20th Jan 2022. 7.44am
Regency View:
Morning Report – Thursday 20th January
FTSE to open at 7,625 (+35 pts)
Asian shares are up considerably overnight as China cut its key mortgage rate for the first time in nearly two years…
The Hang Seng has surged more than 3% following the Peoples Bank of China’s decision to cut its interest rate to 3.7%.
This represents a clear divergence in monetary policy relative to other major central banks such as the Fed and BoE who are starting to hike rates.
| S&P 500 | -0.97% | Bearish for UK stocks |
| Hang Seng | +3.30% | Bullish for UK stocks |
| Gold | -0.02% | Neutral for UK stocks |
| AUD/JPY | +0.46% | Bullish for UK stocks |
| US 10yr Yield | -12pts | Neutral for UK stocks |
The FTSE bounced from the first support level we highlighted in yesterday’s Morning Report – the broken swing highs at 7,533.
It goes without saying that the markets reluctance to retrace too deep is clearly a bullish sign, and the FTSE’s New Year uptrend remains firmly back on track.
FTSE 100 Daily Rolling Futures – Key Levels
| Interim Results |
| Ilika (IKA) |
| Trading Announcements |
| AB Foods (ABF) |
| International Economic Announcements |
| 10:00 (EU) Consumer Price Index – Core (MoM)(Dec) |
| 13:30 (US) Initial Jobless Claims (Jan 14) |
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Disclaimer:
This research is prepared for general information only and should not be construed as any form of investment advice.