12th May 2021. 7.45am
Morning Report – Wednesday 12th May
FTSE to open at 6,929 (-19 pts)
It’s been a quiet Asian session, as markets tread water ahead of today’s US inflation data (see calendar below).
As can be seen from our risk barometer (below), the S&P continued its recent weakness, while other asset classes are in neutral territory as we head into European trading.
|S&P 500||-0.87%||Bearish for UK stocks|
|Hang Seng||+0.17%||Neutral for UK stocks|
|Gold||-0.23%||Neutral for UK stocks|
|AUD/JPY||-0.26%||Neutral for UK stocks|
|US 10yr Yield||-0.44%||Neutral for UK stocks|
The FTSE found support at last week’s swing lows – a level which coincides with the ascending trendline.
Given the strength of yesterday’s sell-off, probabilities are not in favour of swift bounce-back. Instead, we would expect to see some sideways consolidation near the trendline and the April swing lows at 6,850.
|Vertu Motors (VTU)|
|Compass Group (CPG)|
|Sage Group (SGE)|
|Ote Ads (OTES)|
|Coca-Cola HBC (CCH)|
|UK Economic Announcements|
|(07:00) GDP (Preliminary)|
|(07:00) Industrial Production|
|(07:00) Index of Services|
|(07:00) Manufacturing Production|
|(07:00) Balance of Trade|
|(07:00) Gross Domestic Product|
|International Economic Announcements|
|(07:00) Consumer Price Index (GER)|
|(10:00) Industrial Production (EU)|
|(11:30) Consumer Price Index ex Food & Energy MoM (US)|
|(11:30) Consumer Price Index ex Food & Energy YoY (US)|
|(12:00) MBA Mortgage Applications (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.