5th May 2021. 7.47am
Regency View:
Morning Report – Wednesday 5th May
FTSE to open at 6,955 (+32 pts)
Comments from US Treasury secretary Janet Yellen yesterday’s sent tech stocks lower…
The former Federal Reserve chair warned that “interest rates will have to rise somewhat to make sure that our economy doesn’t overheat”. The comments were made in relation to President Biden’s proposed $2 trillion spending package outlined last month.
Asian stocks have continued yesterday’s weakness, and whilst European futures have bounced from yesterday evening’s lows, risk aversion appears to be growing.
| S&P 500 | -0.67% | Bearish for UK stocks |
| Hang Seng | -0.51% | Bearish for UK stocks |
| Gold | -0.08% | Neutral for UK stocks |
| AUD/JPY | +0.28% | Bullish for UK stocks |
| US 10yr Yield | +0.33% | Neutral for UK stocks |
We mentioned in yesterday’s morning report that “we would expect to see volatility increase as the market battles to break resistance”, and that’s exactly what we got yesterday.
The FTSE futures printed their largest daily range since the mid-April sell-off, with prices touching swing resistance early in the session only to sell-off and break below the small ascending trendline which had been forming during the last fortnight.
FTSE 100 Daily Rolling Futures – Key Levels
| Final Results |
| Wandisco (WAND) |
| Interims |
| Cambria Auto (CAMB) |
| Smiths News (SNWS) |
| Virgin Money UK (VMUK) |
| Q1 Results |
| Amryt Pharma (AMYT) |
| Trading Announcements |
| Direct Line (DLG) |
| Smith & Nephew (SN.) |
| International Economic Announcements |
| (08:55) PMI Services (GER) |
| (08:55) PMI Composite (GER) |
| (09:00) PMI Composite (EU) |
| (09:00) PMI Services (EU) |
| (10:00) Producer Price Index (EU) |
| (12:00) MBA Mortgage Applications (US) |
| (14:45) PMI Composite (US) |
| (14:45) PMI Services (US) |
| (15:00) ISM Services (US) |
| (15:00) ISM Prices Paid (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.