22nd Jun 2021. 7.48am
Regency View:
Morning Report – Tuesday 22nd June
FTSE to open at 7,079 (+17 pts)
Wall Street bounced back with gusto yesterday, erasing all of Friday’s losses and putting the S&P back within touching distance of all-time highs.
Overnight, Japanese stocks posted there biggest gains in over a year – boosted by shipping stocks after Mitsui OSK Lines more than tripled its Half-Year net profit forecast. However, this exuberance could not be seen in Chinese-related stocks with Hong Kong’s Hange Seng in negative territory.
| S&P 500 | +1.40% | Bullish for UK stocks |
| Hang Seng | -0.17% | Bearish for UK stocks |
| Gold | +0.06% | Neutral for UK stocks |
| AUD/JPY | -0.16% | Bearish for UK stocks |
| US 10yr Yield | +4.01% | Bullish for UK stocks |
The FTSE put in a sharp intra-day reversal yesterday – rallying from lows and forming a bullish long-tailed candle.
While yesterday’s price action was bullish, momentum is still damaged from Friday’s sell-off. One scenario that could play out is a retest of the broken trendline, or a retest of resistance at 7,167. Either way, we are likely to selling pressure increase the closer we get to resistance.
FTSE 100 Daily Rolling Futures – Key Levels
| Final Results |
| Gear4music (G4M) |
| Novacyt (NCYT) |
| Smith (DS) (SMDS) |
| Staffline (STAF) |
| Trackwise Desi. (TWD) |
| Trifast (TRI) |
| UK Economic Announcements |
| (07:00) Public Sector Net Borrowing |
| International Economic Announcements |
| (15:00) Existing Home Sales (US) |
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Disclaimer:
This research is prepared for general information only and should not be construed as any form of investment advice.