27th Oct 2021. 7.44am
Regency View:
Morning Report – Wednesday 27th October
FTSE to open at 7,270 (-8 pts)
The S&P’s stellar recent rally showed signs of exhaustion yesterday with the market closing some distance below highs of 4,600 reached earlier in the session.
The caution in equities was largely due to a spike in short-dated treasury yields which indicated that the market was moving to price-in more aggressive rate hikes.
Overnight in Asian, Chinese tech stocks have been hit hard after China’s internet watchdog said it plans stricter registration rules for younger net users.
| S&P 500 | +0.18% | Neutral for UK stocks |
| Hang Seng | -1.79% | Bearish for UK stocks |
| Gold | -0.21% | Bullish for UK stocks |
| AUD/JPY | +0.22% | Bullish for UK stocks |
| US 10yr Yield | -1.38% | Bullish for UK stocks |
After a week of intense compression near the highs, the FTSE finally broke and closed above resistance.
As mentioned yesterday, given the length of the consolidation phase, we would expect to see some upside continuation from here.
FTSE 100 Daily Rolling Futures – Key Levels
| Interim Results |
| Bloomsbury (BMY) |
| Q3 Results |
| Glaxosmithkline (GSK) |
| Trading Announcements |
| ContourGlobal (GLO) |
| UK Economic Announcements |
| (00:01) BRC Shop Price Index |
| International Economic Announcements |
| (07:00) GFK Consumer Confidence (GER) |
| (09:00) M3 Money Supply (EU) |
| (12:00) MBA Mortgage Applications (US) |
| (13:30) Durable Goods Orders (US) |
| (15:30) Crude Oil Inventories (US) |
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Disclaimer:
This research is prepared for general information only and should not be construed as any form of investment advice.