22nd Apr 2021. 7.46am
Morning Report – Thursday 22nd April
FTSE to open at 6,933 (+38 pts)
The S&P bounced back after two straight day’s of declines…
Interestingly, yesterday’s rally totally erased Tuesday’s losses and this is a very bullish sign. Asian stocks have followed suit, but they remain well below Monday’s highs.
The market will be focused on today’s ECB rate decision and policy statement. There are rumours that more hawkish members of the ECB governing council are trying to push for scaling back its huge bond-buying programme, despite rising Covid-19 infections and continued lockdowns in many European countries.
Should the ECB strike a more hawkish tone, the market will almost certainly respond negatively.
|S&P 500||+0.93%||Bullish for UK stocks|
|Hang Seng||+0.45%||Bullish for UK stocks|
|Gold||-0.15%||Neutral for UK stocks|
|AUD/JPY||-0.07%||Neutral for UK stocks|
|US 10yr Yield||-0.91%||Neutral for UK stocks|
The FTSE bounced from the short-term swing support level at 6,852 yesterday. It now looks as though we will retest resistance at 6,961…
Given the strength of Tuesday’s sell-off relative to yesterday’s bounce, we’d expect selling pressure to kick back in at resistance.
|Deltex Medical (DEMG)|
|Jadestone Energy (JSE)|
|Novolip Regs (NLMK)|
|Aj Bell (AJB)|
|Anglo American (AAL)|
|Gem Diamonds Di (GEMD)|
|Rentokil Initial (RTO)|
|Taylor Wimpey (TW.)|
|International Economic Announcements|
|(09:00) IFO Current Assessment (GER)|
|(09:00) IFO Business Climate (GER)|
|(09:00) IFO Expectations (GER)|
|(10:00) Existing Home Sales (US)|
|(12:45) ECB Interest Rate (EU)|
|(13:30) Initial Jobless Claims (US)|
|(13:30) Continuing Claims (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.