30th Mar 2021. 7.44am
Morning Report – Tuesday 30th March
FTSE to open at 6,771 (35 pts)
US stocks bounced back from fears that a default by hedge fund Archegos Capital Management may have wider contagion than Credit Suisse and Nomura.
Credit Suisse, who loaned equity to Archegos saw its shares plunge 14% yesterday, and Japanese bank Nomura, who also warned of a significant blow related to the fund, saw its shares drop 16%, the biggest sell-off for the company on record.
Our risk barometer is in relatively neutral territory, but it’s worth noting that US 10yr yields have broken to new 12-month highs overnight, and this may raise inflation concerns and weigh on stocks as European trading progresses.
|S&P 500||-0.09%||Neutral for UK stocks|
|Hang Seng||+1.10%||Bullish for UK stocks|
|Gold||-0.23%||Neutral for UK stocks|
|AUD/JPY||+0.46%||Bullish for UK stocks|
|US 10yr Yield||+2.18%||Bearish for UK stocks|
FTSE futures bounced back during the second half of US trading yesterday – hence this morning’s 35 point opening jump.
Clearly the key focus for the market will be on making a third attempt to break through the 6,800 barrier. Should it do so, then a run towards the January highs at 6,961 looks the most likely scenario – so there’s plenty of upside to play for.
|Animalcare Grp (ANCR)|
|Barr (A.G.) (BAG)|
|Central Asia (CAML)|
|Ekf Diagnostics (EKF)|
|Itaconix Plc (ITX)|
|Loopup Group (LOOP)|
|Michelmersh Brick Holdings (MBH)|
|S & U (SUS)|
|Silence Ther. (SLN)|
|Yu Group (YU.)|
|3i Group (III)|
|UK Economic Announcements|
|(09:30) Mortgage Approvals|
|(09:30) M4 Money Supply|
|(09:30) Consumer Credit|
|International Economic Announcements|
|(07:00) Import Price Index (GER)|
|(10:00) Business Climate Indicator (EU)|
|(10:00) Consumer Confidence (EU)|
|(10:00) Economic Sentiment Indicator (EU)|
|(10:00) Services Sentiment (EU)|
|(10:00) Industrial Confidence (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.