11th Aug 2021. 7.40am
Morning Report – Wednesday 11th August
FTSE to open at 7,172 (+11 pts)
The S&P 500 closed almost flat yesterday as the market formed a small ‘spinning top’ or ‘doji’ candle – signalling indecision as the Senate debate over Joe Biden’s $3.5 trillion spending plans entered a second day.
US bond yields rose for their fifth consecutive session with traders continuing to price-in tightening US monetary policy following last weeks strong employment data.
Overnight, it’s been a quiet Asian session with stocks, commodities and currencies treading water.
|S&P 500||+0.10%||Neutral for UK stocks|
|Hang Seng||+0.12%||Neutral for UK stocks|
|Gold||+0.21%||Neutral for UK stocks|
|AUD/JPY||+0.04%||Neutral for UK stocks|
|US 10yr Yield||+2.25%||Bullish for UK stocks|
The FTSE finally pushed up into the long-term resistance zone we’ve be highlighting for several weeks.
However, you need more than a resistance zone to call the market short, and given yesterday’s strong close, we’re seeing no evidence of resistance taking hold just yet.
|CLS Holdings (CLI)|
|Hill & Smith (HILS)|
|RPS Group (RPS)|
|Vaalco Energy (EGY)|
|Gem Diamonds Di (GEMD)|
|International Economic Announcements|
|(07:00) Consumer Price Index (GER)|
|(12:00) MBA Mortgage Applications (US)|
|(13:30) Consumer Price Index (US)|
|(15:30) Crude Oil Inventories (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.