21st Jul 2021. 7.47am
Morning Report – Wednesday 21st July
FTSE to open at 6,894 (+13 pts)
Yesterday’s price action saw the markets take a brief respite from their flight-to-safety sell-off with Wall Street rallying and bond prices falling (yields rising) for the first time in five sessions.
However, overnight in Asia shares have resumed the sell-off with Hong Kong’s Hang Seng index trading back near six-month lows, and the safe haven currencies Japanese yen and U.S. dollar strengthening.
|S&P 500||+1.52%||Bullish for UK stocks|
|Hang Seng||-0.64%||Bearish for UK stocks|
|Gold||+0.12%||Neutral for UK stocks|
|AUD/JPY||-0.42%||Bearish for UK stocks|
|US 10yr Yield||+2.76%||Bullish for UK stocks|
The FTSE put in a small bounce from the key support area at 6,800 during yesterday’s session.
It’s also worth noting that yesterday’s trading range was contained within Monday’s range – forming an ‘inside day’ consolidation pattern.
Due to the strength of the recent sell-off and the inside day pattern, we would expect at least another retest of the support area in the coming sessions.
|Rtc Grp. (RTC)|
|Royal Mail (RMG)|
|Advanced Medical Solutions Group (AMS)|
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This research is prepared for general information only and should not be construed as any form of investment advice.