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Morning Report – Thursday 29th September

FTSE to open at 6,985 (-20 pts)

Stocks on Wall Street rallied from support yesterday as bond markets calmed and the yield on US 10yr Treasuries eased back from highs.

While the Bank of England took emergency action to prop up the gilt market, unleashing a £65bn bond-buying programme.

Overnight in Asia, shares in Hong Kong gave up their early gains after the Hang Seng’s two largest IPO’s of the year opened sharply lower on their debuts.

?Risk Barometer Explained

Having pressed down into a major area of support, the FTSE put in a large intra-day reversal on Wednesday – forming a bullish ‘pin-bar’ candle.

This large reversal candle signals selling exhaustion and indicates that buyers are stepping back into the market after two-weeks of heavy selling pressure.

FTSE 100 Daily Rolling Futures – Key Levels