4th Aug 2022. 7.47am
Morning Report – Thursday 4th August
FTSE to open at 7,437 (-9 pts)
US tech stocks hit their highest level in three months yesterday, lead by PayPal which surged more than 9% due to better than expected quarterly earnings.
The bullish sentiment on Wall Street has carried through into Asian trading despite China launching military exercises near Taiwan in rebuke over Nancy Pelosi’s visit to the country.
All eyes will be on the Bank of England today which is expected to hike interest rates by 50 basis points to 1.75% – the biggest rate rise in 27 years.
|S&P 500||+1.56%||Bullish for UK stocks|
|Hang Seng||+1.64%||Bullish for UK stocks|
|Gold||+0.29%||Bearish for UK stocks|
|AUD/JPY||+0.54%||Bullish for UK stocks|
|US 10yr Yield||-49pts||Bullish for UK stocks|
Yesterday’s price action saw the market rally from the broken resistance turned support area at 7,361 that we’ve highlighted in previous reports.
A retest of Monday’s highs now looks likely with short-term momentum suggesting that the market will break higher.
|Revolution Bg (REVB)|
|Morgan Sindall Group (MGNS)|
|Coca-cola Euro. (CCEP)|
|Hikma Pharmaceuticals (HIK)|
|Gym Grp (GYM)|
|Sndrsn Dsn (SDG)|
|UK Economic Announcements|
|(09:30) PMI Construction|
|(12:00) BoE Interest Rate Decision|
|International Economic Announcements|
|(07:00) Factory Orders (GER)|
|(10:00) Retail Sales (EU)|
|(13:30) Continuing Claims (US)|
|(13:30) Initial Jobless Claims (US)|
|(13:30) Balance of Trade (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.