27th Jan 2022. 7.41am
Morning Report – Thursday 27th January
FTSE to open at 7,380 (-90 pts)
“The committee is of a mind to raise the federal funds rate at the March meeting assuming that conditions are appropriate for doing so.”
The words of Fed Chair Jay Powell during yesterday evening’s press conference after the FOMC’s two-day meeting.
These hawkish comments that all but confirmed a March rate hike caused stocks on Wall Street to erase all of the gains it had made earlier in the day.
It has also caused Asian shares to drop sharply overnight, with the Niekkei 225 down more than -3% and the Hang Sneg down -2.51%.
|S&P 500||-0.15%||Neutral for UK stocks|
|Hang Seng||-2.51%||Bearish for UK stocks|
|Gold||-0.33%||Bullish for UK stocks|
|AUD/JPY||-0.55%||Bearish for UK stocks|
|US 10yr Yield||+101pts||Bearish for UK stocks|
The FTSE flirted with breaking out of the ‘inside day’ pattern that we identified yesterday.
However, hawkish comments from the Fed caused the futures to close back within Monday’s range, and a weak Asian session has seen the futures retreat back to the trendline.
|Idox Group (IDOX)|
|Redx Pharma (REDX)|
|Ig Group Holdings (IGG)|
|Pphe Hotel (PPH)|
|Empresaria Group (EMR)|
|Intermediate Capital (ICP)|
|Polymetal International (POLY)|
|Fuller Smith & Turner (FSTA)|
|International Economic Announcements|
|(07:00) GFK Consumer Confidence (GER)|
|(10:00) Services Sentiment (EU)|
|(10:00) Economic Sentiment Indicator (EU)|
|(10:00) Business Climate Indicator (EU)|
|(13:30) Initial Jobless Claims (US)|
|(13:30) Continuing Claims (US)|
|(13:30) Durable Goods Orders (US)|
|(13:30) GDP (Preliminary) (US)|
|(15:00) Pending Homes 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.