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17th Feb 2021. 7.51am

Regency View:

Morning Report – Wednesday 17th February

FTSE set to open up 12 points at 6,761

While Asian equities continued their spectacular rally overnight, other asset classes suggest that we’re in for a mild open to European trading (see risk barometer below).

This morning’s UK inflation data came in slightly ahead of expectations. The consumer prices index rose 0.7% in January – lifted by furniture and food purchases.

US retail sales numbers, released at 1.30pm (UK time) will likely dominate traders thoughts. The number is for the final three months of 2020 and the market is expecting to see a rebound from three straight quarters of losses.

S&P 500-0.06%Neutral for UK stocks
Hang Seng+1.28%Bullish for UK stocks
Gold-0.12%Neutral for UK stocks
AUD/JPY-0.08%Neutral for UK stocks
US 10yr Yield-1.03%Bearish for UK stocks
Regency Risk Barometer Snapshot

Yesterday’s tepid session was anticipated given the strong ‘trend day’ rally we witnessed on Monday.

Interestingly, the market did try and push higher yesterday but closed back within Monday’s range – forming a small pin-bar candle. The top of this pin-bar at 6,800 is a level worth watching for day-traders as it may cause some short-term resistance.

How the market consolidates from here will tell traders a lot about the underlying appetite for European equities – which are under-performing their Asian and American peers…

If we continue to tread water near Monday’s highs, forming small range candles, we will plan for a restest of the January highs.

FTSE 100 Daily Rolling Futures – Key Levels

FTSE 100 Daily Rolling Futures – Key Levels
Final Results
British American Tobacco (BATS)
Plus500 (PLUS)
Rio Tinto (RIO)
Interim Results
Transense (TRT)
UK Economic Announcements
(07:00) Producer Price Index
(07:00) Retail Price Index
(07:00) Consumer Price Index
International Economic Announcements
(07:00) Wholesale Price Index (GER)
(12:00) MBA Mortgage Applications (US)
(13:30) Producer Price Index (US)
(13:30) Retail Sales (US)
(14:15) Capacity Utilisation (US)
(14:45) Industrial Production (US)
(15:00) Business Inventories (US)
Today’s Financial Diary

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This research is prepared for general information only and should not be construed as any form of investment advice.