14th Sep 2022. 7.50am
Morning Report – Wednesday 14th September
FTSE to open at 7,342 (-43 pts)
Stocks on Wall Street sank lower yesterday as US inflation data came in ahead o expectations…
The consumer price index increased 0.1% for August, above economists’ expectations for a 0.1% drop.
Core inflation — which strips out volatile items like energy and food — rose by 0.6% for an annual increase of 6.3%, compared with 5.9% recorded for July.
Traders quickly moved to recalibrate the future path of Fed interest rates, and the S&P tumbled more than -4%.
|S&P 500||-1.13%||Bearish for UK stocks|
|Hang Seng||-1.10%||Bearish for UK stocks|
|Gold||+0.54%||Bearish for UK stocks|
|AUD/JPY||-0.18%||Neutral for UK stocks|
|US 10yr Yield||+73pts||Bearish for UK stocks|
Yesterday’s price action saw the FTSE put in a sharp reversal – forming a bearish engulfing pattern.
The strength of yesterday’s reversal could see the FTSE head lower to retest the bottom of the long-term wedge which appears to be tightening.
|Thungela Res (TGA)|
|Mti Wireless (MWE)|
|UK Economic Announcements|
|(00:01) RICS Housing Market Survey|
|International Economic Announcements|
|(07:00) Wholesale Price Index (GER)|
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This research is prepared for general information only and should not be construed as any form of investment advice.