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 Pre Market Sentiment and Charts Influencing UK Markets 06:30 (3 mins read)

FTSE Futures unch at 7280 following positive  US close and reaction to Fed announcement: all US indices forming a doji  candle on the daily which signifies some uncertainty. The 75 bps increase in interest rate had been signalled so didn't  surprise though the ECB 'ad hoc' policy meeting did. The markets are looking to discount the outcome of further rises in '22 and price accordingly :  for now it would appear we have a cautious rally from deeply oversold conditions but in very uncertain conditions.

US close saw quality tech lead again with the NASDAQ +2.5% , S&P +1.5 - Energy  and Consumer Defensives pulled back highlighting the rotation: these may form themes and are trends to watch. Positive NASDAQ is positive AIM.

DXY has pulled back somewhat on the Fed announcement but remains elevated at 104.9: any further pullback is positive equities and gold.

Sentiment improved slightly: VIX  below 30 at  29.6 which is elevated but encouraging.

OIl has pulled back to the 21 EMA while oilers have seen some profit taking as rotation from this crowded trade continues.

Copper remains weak and below all MAs.

Gold  rallied yesterday as highlighted from the trend line to the 2021 breakout : it has seen resistance yesterday at the 200 MA and is currently held below the 8EMA.

Econ Calendar : BoE interest rates set for 25bps.

 

 

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