31st Mar 2021. 7.41am
Morning Report – Wednesday 31st March
FTSE to open at 6,762 (-10 pts)
Asian stocks have remained subdued overnight despite data showing China’s factory activity expanded at a faster-than-expected pace in March.
Rising US bond yields and strengthening US dollar have kept inflationary fears at the forefront of Asian investors minds, and the Hang Seng is set to post its first down month since September 2020.
There is a mildly bearish tone to our risk barometer this morning, but the magnitude of the price movements are relatively small and hence we are not expecting huge levels of volatility in early European trading.
|S&P 500||-0.32%||Bearish for UK stocks|
|Hang Seng||-0.41%||Bearish for UK stocks|
|Gold||-0.05%||Neutral for UK stocks|
|AUD/JPY||+0.47%||Bullish for UK stocks|
|US 10yr Yield||+1.57%||Bearish for UK stocks|
The FTSE had a brief flirtation with 6,800 resistance during yesterday’s session, but prices quickly retreated and the futures closed the session back where they opened – forming an indecisive ‘doji’ candle.
We would expect prices to make another attempt to break resistance during today’s trading.
|Aquis Exchange (AQX)|
|Bigblu Broadb. (BBB)|
|Gulf Keystone Petroleum (GKP)|
|James Halstead (JHD)|
|Topps Tiles (TPT)|
|UK Economic Announcements|
|(07:00) Nationwide House Price Index|
|(07:00) Current Account|
|(07:00) Gross Domestic Product|
|International Economic Announcements|
|(08:55) Unemployment Rate (GER)|
|(12:00) MBA Mortgage Applications (US)|
|(14:45) Chicago PMI (US)|
|(15:00) Pending Homes Sales (US)|
|(15:30) Crude Oil Inventories (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.