29th Sep 2021. 7.47am
Regency View:
Morning Report – Wednesday 29th September
FTSE to open at 7,032 (+4 pts)
US stocks were pummeled yesterday as fears of ‘stagflation’ loomed large…
The S&P 500 dropped more than 2% with tech stocks hit the hardest as expectations of interest rate increases, higher inflation and slower economic growth put the S&P’s long-term bull run into question.
Overnight in Asia, we’ve seen markets Chinese stocks tread water, and Japanese stocks move lower as we head into the European open.
| S&P 500 | -1.13% | Bearish for UK stocks |
| Hang Seng | -1.10% | Bearish for UK stocks |
| Gold | +0.54% | Bearish for UK stocks |
| AUD/JPY | -0.18% | Neutral for UK stocks |
| US 10yr Yield | +73pts | Bearish for UK stocks |
We mentioned in yesterday’s Morning Report that two bearish ‘pin-bar’ candles in three sessions signaled weakness, and we saw the market move lower.
It’s worth noting that the FTSE’s sell-off was nowhere near as severe as the S&P, and prices seem to be tracking the broken descending trendline as the market retraces.
FTSE 100 Daily Rolling Futures – Key Levels
| Interim Results |
| Thungela Res (TGA) |
| Mti Wireless (MWE) |
| UK Economic Announcements |
| (00:01) RICS Housing Market Survey |
| International Economic Announcements |
| (07:00) Wholesale Price Index (GER) |
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Disclaimer:
This research is prepared for general information only and should not be construed as any form of investment advice.