6th Jan 2022. 7.44am
Regency View:
Morning Report – Thursday 6th January
FTSE to open at 7,440 (-77 pts)
A rotation out of US Tech stocks saw the Nasdaq close down more than 3% on Wednesday with a clear focus on speculative loss-making tech stocks…
The move is already being dubbed the ‘spec tech wreck’ as the markets move to price-in the impact of tightening monetary policy from the Fed following a hawkish set of FOMC minutes.
We’re also seeing this play out in the bond market with the yield on US 10yr government bonds touching a six-month high yesterday.
Overnight, Asian stocks have been mixed with the Nikkei mirroring the drop on Wall Street, whereas the Hang Seng has stabilised after a strong sell-off earlier in the week.
| S&P 500 | -1.94% | Bearish for UK stocks |
| Hang Seng | +0.20% | Neutral for UK stocks |
| Gold | -0.50% | Bullish for UK stocks |
| AUD/JPY | -0.99% | Bearish for UK stocks |
| US 10yr Yield | +60pts | Bearish for UK stocks |
The FTSE has undergone a pullback from highs, but the market is showing clear strength relative to US stocks.
Prices have pulled back into the November highs and the FTSE bulls will be looking for broken resistance to provide support.
FTSE 100 Daily Rolling Futures – Key Levels
| Trading Announcements |
| Next (NXT) |
| International Economic Announcements |
| 13:00 Harmonized Index of Consumer Prices (EUR) |
| 13:30 Initial Jobless Claims (US) |
| 15:00 ISM Services PMI (US) |
Don’t have a Regency account yet?
Start receiving our actionable Market Alerts and Analysis with real-time email and SMS alerts throughout your trading day. Simply click below to create your account for free.
Create AccountAny Questions? Please feel free to call 0203 973 8007 or email us at info@regency.capital
Disclaimer:
This research is prepared for general information only and should not be construed as any form of investment advice.