22nd Jun 2021. 7.48am
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.
|Smith (DS) (SMDS)|
|Trackwise Desi. (TWD)|
|UK Economic Announcements|
|(07:00) Public Sector Net Borrowing|
|International Economic Announcements|
|(15:00) Existing Home Sales (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.