7th Apr 2021. 7.46am
Morning Report – Wednesday 7th April
FTSE to open at 6,852 (+28 pts)
US stocks took a well-earned pause for breath yesterday following a burst to new highs earlier in the week. While US bond yields have continued to retreat from highs – cooling the markets inflationary concerns.
Asian stocks have had a mixed session with Hong Kong’s Hang Seng erasing some of Monday’s gains and the Japanese Nikkei in small positive territory.
|S&P 500||-0.10%||Neutral for UK stocks|
|Hang Seng||-0.72%||Bearish for UK stocks|
|Gold||-0.03%||Neutral for UK stocks|
|AUD/JPY||-0.14%||Neutral for UK stocks|
|US 10yr Yield||-0.11%||Neutral for UK stocks|
The FTSE broke and closed above the key resistance level at 6,800 that we’ve highlighted for several months. This is clearly a bullish sign and has potentially opened the door for a retest of the New Year highs at 6,961.
We still need to be on guard for a false breakout scenario, whereby the market closes back below resistance during today’s session – creating a ‘two-bar fakeout’ pattern. However, probabilities favour the long side, and if we see strength during today’s opening rotation then this could lead to an acceleration in buying pressure.
|Hilton Foods (HFG)|
|Igas Energy (IGAS)|
|Pharos Energy (PHAR)|
|UK Economic Announcements|
|(01:01) RICS Housing Market Survey|
|(09:30) PMI Services|
|International Economic Announcements|
|(11:00) MBA Mortgage Applications (US)|
|(15:30) Crude Oil Inventories (US)|
|(20:00) Consumer Credit (US)|
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This research is prepared for general information only and should not be construed as any form of investment advice.