14th Apr 2021. 7.46am
Morning Report – Wednesday 14th April
FTSE to open at 6,895 (+5 pts)
For the first time this year, US tech stocks and US 10yr yields rallied simultaneously. This indicates that the market is potentially shifting focus away from inflation concerns and back towards the speed of the vaccine rollout, which has stalled in the US in recent weeks with traders buying COVID-proof tech stocks.
We have the first of the US banks reporting earnings today – click here for our preview video on US Bank Earnings Week.
Whilst the futures are pointing to a flat open, there is a distinctly bullish feel to our risk barometer, so it wouldn’t be too surprising to see a rally at the opening bell.
|S&P 500||+0.33%||Bullish for UK stocks|
|Hang Seng||+1.41%||Bullish for UK stocks|
|Gold||+0.15%||Neutral for UK stocks|
|AUD/JPY||+0.36%||Bullish for UK stocks|
|US 10yr Yield||+0.54%||Neutral for UK stocks|
For the second consecutive session the market bounced from the ascending trendline that we’ve been highlighting for the past week.
Interestingly, yesterday’s range was fully contained within Monday’s range – forming an inside day pattern. This compression pattern signals that the market may be gearing up for a directional move.
|Destiny Pharma. (DEST)|
|The Mission Group (TMG)|
|Audioboom Grp. (BOOM)|
|Robert Walters (RWA)|
|International Economic Announcements|
|(10:00) Industrial Production (EU)|
|(12:00) MBA Mortgage Applications (US)|
|(13:30) Import and Export Price Indices (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.