13th Oct 2021. 7.47am
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.
|S&P 500||-0.24%||Bearish for UK stocks|
|Hang Seng||+0.00% (closed)||Neutral for UK stocks|
|Gold||+0.14%||Neutral for UK stocks|
|AUD/JPY||-0.19%||Neutral for UK stocks|
|US 10yr Yield||-2.42%||Bullish for UK stocks|
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.
|Applied Graph. (AGM)|
|Angling Direct (ANG)|
|Sndrsn Dsn (SDG)|
|Audioboom Grp. (BOOM)|
|UK Economic Announcements|
|(07:00) Manufacturing Production|
|(07:00) Gross Domestic Product|
|(07:00) Industrial Production|
|(07:00) Index of Services|
|(07:00) Balance of Trade|
|International Economic Announcements|
|(07:00) Consumer Price Index (GER)|
|(10:00) Industrial Production (EU)|
|(12:00) MBA Mortgage Applications (US)|
|(13:30) Consumer Price Index (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.