23rd Feb 2021. 7.48am
Morning Report – Tuesday 23rd February
FTSE to open at 6,633 (+21 pts)
We’re starting to see a small divergence in the performance of Asian stocks versus their US counterparts…
The S&P and Nasdaq sold off yesterday amid concerns of rising inflation expectations – with US tech stocks being hit the hardest.
While in Asia, Hong Kong’s Hang Seng index has had a strong session – boosted by a 3.6% jump from HSBC after it released their Final Results which reported it would resume dividend payments.
Our risk barometer is showing a mixed picture in terms of appetite for risky stocks, but as we’ll discuss below, the FTSE’s technicals are starting to look a bit more bullish…
|S&P 500||-0.77%||Bearish for UK stocks|
|Hang Seng||+1.24%||Bullish for UK stocks|
|Gold||+0.12%||Neutral for UK stocks|
|AUD/JPY||+0.07%||Neutral for UK stocks|
|US 10yr Yield||-0.25%||Neutral for UK stocks|
The FTSE has bounced from the confluent support zone that we’ve highlighted during the last two Morning Reports.
After breaking below it in early trading yesterday, the FTSE closed back above it – faking out weak-handed shorts and setting the scene for a potential bounce-back rally.
We’re set to open just above yesterday’s high and this will be a key level that the FTSE needs to hold above in early trading in order to set the tone for a bullish session.
|Croda International (CRDA)|
|Fondul Proprietatea (FP.)|
|HSBC Holdings (HSBA)|
|InterContinental Hotels (IHG)|
|Diurnal Grp (DNL)|
|Springfield Pr. (SPR)|
|UK Economic Announcements|
|(07:00) Claimant Count Rate|
|(07:00) Unemployment Rate|
|International Economic Announcements|
|(10:00) Consumer Price Index (EU)|
|(14:00) House Price Index (US)|
|(15:00) Consumer Confidence (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.