14th Jul 2021. 7.46am
Morning Report – Wednesday 14th July
FTSE to open at 7,109 (-15 pts)
Yesterday’s U.S. inflation data came in higher than expected with the U.S. Consumer Price Index (ex Food & Energy) rising 0.9% month-on-month (0.4% expected) and rising 4.5% year-on-year (4% expected).
Traders reacted cautiously to the inflation data with the S&P ending yesterday’s session lower, and this caution has followed through into today’s Asian session.
Sticking with the inflation theme, this morning’s UK inflation data rose sharply in June, far exceeding expectations and adding to pressure on the Bank of England.
The annual rate of UK inflation hit 2.5% in June, rising from a rate of 2.1 per cent in May, the highest since August 2018.
|S&P 500||-0.35%||Bearish for UK stocks|
|Hang Seng||-0.71%||Bearish for UK stocks|
|Gold||+0.35%||Bearish for UK stocks|
|AUD/JPY||+0.12%||Neutral for UK stocks|
|US 10yr Yield||+4.11%||Bullish for UK stocks|
Yesterday’s price action saw the FTSE post its narrowest trading range in over seven sessions yesterday – signalling indecision and volatility compression.
Today’s strong inflation data has seen the futures break below yesterday’s low, and it looks as though we’re in for a bearish start.
|Accrol Gp (ACRL)|
|Great Eastern (GEEC)|
|Knights Group (KGH)|
|System1 Group (SYS1)|
|Barratt Developments (BDEV)|
|UK Economic Announcements|
|(07:00) Producer Price Index|
|(07:00) Consumer Price Index|
|(07:00) Retail Price Index|
|International Economic Announcements|
|(10:00) Industrial Production (EU)|
|(12:00) MBA Mortgage Applications (US)|
|(15:30) Crude Oil Inventories (US)|
|(17:00) Fed’s Chair Powell testifies|
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This research is prepared for general information only and should not be construed as any form of investment advice.