6th May 2021. 7.48am
Morning Report – Thursday 6th May
FTSE to open at 7,043 (+4 pts)
European stocks outperformed their US counterparts yesterday with the S&P having a tepid session following Tuesday’s losses.
All eyes will be on the Bank of England’s rate decision and policy statement this afternoon…
Analyst expectations look split between whether the Monetary Policy Committee will announce a scaling back its £150bn bond-buying programme, or whether it will just “endorse” market expectations of a two rate rises between now and the end of 2024.
|S&P 500||+0.07%||Neutral for UK stocks|
|Hang Seng||+0.45%||Bullish for UK stocks|
|Gold||+0.36%||Neutral for UK stocks|
|AUD/JPY||+0.09%||Neutral for UK stocks|
|US 10yr Yield||+0.22%||Neutral for UK stocks|
Yesterday’s turnaround in the FTSE was very impressive… Having broken decisively lower on Tuesday, the market erased all of Tuesday’s losses – closing just under the April swing highs.
The Bank of England’s comments may create some additional volatility, and we will be looking for prices to hold above the April swing highs in order to confirm the start of a new trend leg higher.
|Bank Pekao Sa (BPKD)|
|Kosmos Energy (KOS)|
|Aib Group (AIBG)|
|Barratt Developments (BDEV)|
|Derwent London (DLN)|
|UK Economic Announcements|
|(00:01) RICS Housing Market Survey|
|(09:30) PMI Services|
|(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)|
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This research is prepared for general information only and should not be construed as any form of investment advice.