5th May 2022. 7.46am
Morning Report – Thursday 5th May
FTSE to open at 7,589 (+96 pts)
The Fed hiked interest rates by 0.5% for the first time since 2000 and sent a strong signal that it intended to increase rates by the same amount at the next two meetings.
Stocks on Wall Street rallied to their highest levels in over a week, as Fed chair Jay Powell appeared to rule out raising rates by 0.75 percentage points at one of its forthcoming meetings.
Overnight in Aisa, stocks have had a relatively quiet session, with the Hang Seng edging higher and the Nikkei 225 in small negative territory.
All eyes will now be on the Bank of England (BoE) ahead of this afternoon’s interest rate decision and monetary policy statement.
|S&P 500||+2.99%||Bullish for UK stocks|
|Hang Seng||+0.35%||Bullish for UK stocks|
|Gold||+0.96%||Bearish for UK stocks|
|AUD/JPY||-0.09%||Neutral for UK stocks|
|US 10yr Yield||-31pts||Bullish for UK stocks|
Yesterday’s price action saw the FTSE futures rally back after the 4.30pm closing bell – keeping the emerging wedge pattern that highlighted yesterday firmly in place.
Day traders will be looking to see if the FTSE can break above last week’s highs before the BoE rate this afternoon.
|Shell Plc (SHEL)|
|Derwent London (DLN)|
|Interim Management Statement|
|UK Economic Announcements|
|(12:00) Bank of England Monetary Policy Statement|
|(12:00) Bank of England Interest Rate Decision|
|(12:30) Bank of England Governor Bailey speech|
|International Economic Announcements|
|(13:30) Initial Jobless Claims (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.