15th Dec 2021. 7.45am
Morning Report – Wednesday 15th December
FTSE to open at 7,212 (-7 pts)
Wall Street weakened yesterday as traders grew nervous ahead of this afternoon’s Fed rate decision, economic projections and FOMC statement…
The Fed’s rhetoric has been hawkish in recent weeks, and markets expect a quicker end to its bond-buying scheme along with multiple rate increases over the next few years.
This morning’s UK inflation data came in well ahead of expectations with producer input prices jumping 14.3% year-on-year, producer output prices rising 9.1% year-on-year, and the Retail Price Index increasing 7.1% year-on-year.
|S&P 500||-0.75%||Bearish for UK stocks|
|Hang Seng||-1.19%||Bearish for UK stocks|
|Gold||-0.15%||Neutral for UK stocks|
|AUD/JPY||+0.31%||Bullish for UK stocks|
|US 10yr Yield||+2.17%||Bearish for UK stocks|
The FTSE failed to maintain its bounce from support during yesterday’s session. And this morning’s strong UK inflation data has caused the FTSE futures to move below support.
We have a small interim level of support at 7,181 (see thin blue dotted line on chart below), the market really needs to find a footing today to rule out a retest of the early-December lows.
|Hollywood Bwl (BOWL)|
|Jersey Electricity (JEL)|
|Pressure Tech (PRES)|
|Currys Plc (CURY)|
|In The Style G. (ITS)|
|Condor Gold (CNR)|
|UK Economic Announcements|
|07:00 UK Producer Price Index|
|07:00 UK Retail Price Index|
|International Economic Announcements|
|13:30 US Retail Sales|
|19:00 Fed Interest Rate Decision|
|19:00 Fed Economic Projections|
|19:30 FOMC Press Conference|
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This research is prepared for general information only and should not be construed as any form of investment advice.