5th Oct 2021. 7.36am
Morning Report – Tuesday 5th October
FTSE to open at 7,027 (+16 pts)
Big US tech stocks were hit the hardest yesterday as the S&P 500 fell to its lowest closing price since late July.
Facebook was among the index’s five worst-performers, dropping 4.9% as its main services suffered outages, while Apple, Microsoft and Amazon were also hit hard.
The Hang Seng continued to sell-off in early trading but has since recovered to trade flat on the day.
Meanwhile oil hit seven-year highs yesterday as OPEC refused to accelerate output increases despite growing global energy shortages.
|S&P 500||-1.30%||Bearish for UK stocks|
|Hang Seng||+0.07%||Neutral for UK stocks|
|Gold||-0.61%||Bullish for UK stocks|
|AUD/JPY||-0.19%||Neutral for UK stocks|
|US 10yr Yield||+1.72%||Bearish for UK stocks|
The FTSE held short-term support yesterday, forming an ‘inside day’ in the process.
Given the high degree of randomness that comes with trading in the middle of a long-term range, there’s not much we can take from yesterday’s inside day other than the market is becoming tight with volatility starting to contract.
|Bluefield Solar (BSIF)|
|Hotel Choc (HOTC)|
|Scs Group (SCS)|
|Inspiration Hlt (IHC)|
|UK Economic Announcements|
|(09:30) PMI Services|
|International Economic Announcements|
|(08:55) PMI Services (GER)|
|(08:55) PMI Composite (GER)|
|(10:00) Producer Price Index (EU)|
|(14:45) PMI Composite (US)|
|(14:45) PMI Services (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.