29th Sep 2021. 7.47am
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||-0.63%||Bearish for UK stocks|
|Hang Seng||-0.56%||Bearish for UK stocks|
|Gold||-0.56%||Bullish for UK stocks|
|AUD/JPY||-0.77%||Bullish for UK stocks|
|US 10yr Yield||-56pts||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.
|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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This research is prepared for general information only and should not be construed as any form of investment advice.