4th Nov 2021. 7.43am
Morning Report – Thursday 4th November
FTSE to open at 7,273 (+24 pts)
Wall Street responded positively to yesterday’s Fed policy statement which confirmed that it would be winding down its stimulus programme…
The US Central Bank said it was able to start tapering its bond buying this month because it had achieved “substantial further progress” towards its twin goals of maximum employment and inflation that averages 2%.
Stock markets enjoyed the clarity of the Fed’s statement and the S&P surged to another record high, and this positivity has followed through to Asian trading with the Hang Seng and Nikkei 225 in positive territory.
Looking ahead today, the Bank of England (BoE) is expected to raise interest rates for the first time since 2018. London’s overnight index swap market suggests that traders are currently expecting the BoE to hike rates to 1.25% by 2023 and any deviation from this path will no-doubt cause volatility.
|S&P 500||+0.65%||Bullish for UK stocks|
|Hang Seng||+0.28%||Bullish for UK stocks|
|Gold||+0.31%||Bearish for UK stocks|
|AUD/JPY||+0.09%||Neutral for UK stocks|
|US 10yr Yield||+3.52%||Bearish for UK stocks|
Yesterday’s price action saw the FTSE respond well to the top of the broken resistance / new support zone and the steepest ascending trendline – forming a small bullish pin-bar candle.
A break above yesterday’s highs during the opening rotations would be a very bullish sign.
|Sainsbury (J) (SBRY)|
|Wizz Air (WIZZ)|
|Bank Pekao Sa (BPKD)|
|Derwent London (DLN)|
|Howden Joinery (HWDN)|
|Lancashire Holdings (LRE)|
|Smith & Nephew (SN.)|
|TI Fluid Systems (TIFS)|
|UK Economic Announcements|
|(09:30) PMI Construction|
|(12:00) BoE Interest Rate Decision|
|International Economic Announcements|
|(07:00) Factory Orders (GER)|
|(08:55) PMI Composite (GER)|
|(08:55) PMI Services (GER)|
|(09:00) PMI Services (EU)|
|(09:00) PMI Composite (EU)|
|(10:00) Producer Price Index (EU)|
|(12:30) Continuing Claims (US)|
|(12:30) Initial Jobless Claims (US)|
|(14:00) ISM Prices Paid (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.