20th Jan 2022. 7.44am
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.
|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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This research is prepared for general information only and should not be construed as any form of investment advice.