Regency View:

Morning Report – Wednesday 13th October

FTSE to open at 7,108 (-22 pts)

Wall Street continued to weaken yesterday as last week’s poor set of non-farms payrolls continued to ramp-up fears of stagflation (stagnating growth and high inflation).

It’s been a quiet Asian session due to markets being closed for Chinese Chung Yeung Festival, and the Japanese Nikkei 225 index has traded slightly lower at -0.30%.

This morning’s UK manufacturing and industrial production data came in ahead of expectations, showing a 0.5% and 0.8% gain respectively for August.

?Risk Barometer Explained

For the second consecutive session, the FTSE rallied from intra-day lows only to be halted by short-term resistance.

Yesterday’s range was fully contained within Monday’s range – forming an ‘inside day’ pattern on the futures. This is quite a large inside day and therefore lacks an intensity of price compression, but it may indicate that the market is building for a break of resistance.

FTSE 100 Daily Rolling Futures – Key Levels