21st Oct 2021. 7.45am
Morning Report – Thursday 21st October
FTSE to open at 7,189 (-34 pts)
Wall Street moved to within touching distance of all-time highs yesterday, notching up its sixth consecutive day of gains and marking its longest run of daily increases since the end of June.
Overnight in Asia, stocks have softened due to fresh concerns about the weakening Chinese property sector as China Evergrande nears a default deadline on Saturday.
Evergrande said a deal to sell a $2.6 billion stake in its property services unit failed and the shares have tumbled more than 12% in today’s session.
|S&P 500||+0.37%||Bullish for UK stocks|
|Hang Seng||-0.81%||Bearish for UK stocks|
|Gold||+0.15%||Neutral for UK stocks|
|AUD/JPY||-0.43%||Bearish for UK stocks|
|US 10yr Yield||+1.22%||Bearish for UK stocks|
We mentioned in yesterday’s Morning Report that given Tuesday’s inside day, “Monday’s range now becomes pivotal in determining our directional bias”, and this observation hasn’t changed…
Yesterday’s price action saw the market print a narrow range – rejecting resistance as the market continues to coil within the inside day pattern.
The futures have drifted lower overnight, and it looks like we’ll see prices retest the bottom of Monday’s range at the open.
|Renalytix Plc (RENX)|
|Aj Bell (AJB)|
|Anglo American (AAL)|
|Rentokil Initial (RTO)|
|St James Place (STJ)|
|Vivo Energy (VVO)|
|UK Economic Announcements|
|(07:00) Public Sector Net Borrowing|
|International Economic Announcements|
|(13:30) Initial Jobless Claims (US)|
|(13:30) Philadelphia Fed Index (US)|
|(13:30) Continuing Claims (US)|
|(15:00) Existing Home Sales (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.