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19th Jan 2022. 7.44am

Regency View:

Morning Report – Wednesday 19th January

FTSE to open at 7,523 (-41 pts)

The bond market continued to dominate the narrative yesterday as US Treasury yields kept climbing with markets pricing-in four rate hikes this year.

On Wall Street, the rise in bond yields saw the ‘tech wreck’ raise its ugly head again with the Nasdaq composite index dropping more than 2%.

Overnight in Asia, stocks have mirrored the sell-off on Wall Street with Australia’s ASX 200 down more than 1% and Japan’s Nikkei 225 breaking to three-month lows.

While this morning’s UK inflation data hit a 30-year high, with the Consumer Price Index rising to 5.4% in December (year-on-year) – exceeding analyst expectations.

S&P 500-1.84%Bearish for UK stocks
Hang Seng-0.18%Neutral for UK stocks
Gold-0.01%Neutral for UK stocks
AUD/JPY-0.13%Neutral for UK stocks
US 10yr Yield+59ptsBearish for UK stocks
Regency Risk Barometer Snapshot

We mentioned in yesterday’s Morning Report that price action had indicated that we may see a retracement and that’s exactly what we got.

How deep the retracement goes remains to be seen, but clear reference levels include the broken 5th Jan swing highs at 7,533 and the ascending trendline.

FTSE 100 Daily Rolling Futures – Key Levels

FTSE 100 Daily Rolling Futures – Key Levels
Trading Announcements
BHP Group (BHP)
Wetherspoon (JDW)
Antofagasta (ANTO)
UK Economic Announcements
07:00 Consumer Price Index (YoY)(Dec)
14:15 BoE’s Governor Bailey speech
International Economic Announcements
07:00 (EUR) Harmonized Index of Consumer Prices (YoY)(Dec)
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.