22nd Sep 2022. 7.45am
Morning Report – Thursday 22nd September
FTSE to open at 7,165 (-73 pts)
US stocks moved lower on Wednesday after Fed Chair Jay Powell refused to rule out a recession after implementing a third consecutive 0.75 percentage point rate hike.
“No one knows whether this process will lead to a recession or if so, how significant that recession would be” commented Powell – causing the S&P 500 to finish the day -1.71% lower.
Asian stocks have mirrored the losses on Wall Street due to the potential contagion effects of a US recession.
Focus now shifts to the Bank of England with the Monetary Policy Committee announces its August interest rate decision at lunchtime today.
|S&P 500||-1.71%||Bearish for UK stocks|
|Hang Seng||-1.80%||Bearish for UK stocks|
|Gold||-0.84%||Bullish for UK stocks|
|AUD/JPY||+0.26%||Bullish for UK stocks|
|US 10yr Yield||-34pts||Bullish for UK stocks|
Yesterday’s price action saw the FTSE daily rolling futures give up early gains to close near lows for the day.
Interestingly, yesterday’s range was contained within Tuesday’s range – forming an inside day.
We have also seen this morning’s pre-open price action break below the inside day and then bounce from the bottom of the wedge.
|Time Finance (TIME)|
|Safestyle Uk (SFE)|
|Life Science (LABS)|
|Judges Scientfc (JDG)|
|Learning Technologies Group (LTG)|
|Ceres Power (CWR)|
|Biome Tech (BIOM)|
|Aquis Exchange (AQX)|
|Osirium Tech (OSI)|
|Distrib. Fin. (DFCH)|
|Forward Part (FWD)|
|Brave Bison (BBSN)|
|Time Finance (TIME)|
|Trakm8 Hldgs (TRAK)|
|UK Economic Announcements|
|(12:00) BoE Interest Rate Decision|
|International Economic Announcements|
|(13:30) Continuing Claims (US)|
|(13:30) Current Account (US)|
|(13:30) Initial Jobless Claims (US)|
|(15:00) Consumer Confidence (EU)|
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This research is prepared for general information only and should not be construed as any form of investment advice.