AM Price Action 09:00 : Markets in a Risk-Off “Wait and See “Mode before Tomorrow’s Macro Data
UK markets pulling back slightly in advance of tomorrow’s UK inflation data and US FOMC decision . Brent oil's continued rise now above $86 is also a spectre of prolonged inflation which fits with the “higher for longer” narrative on interest rates. Given the run- up in markets especially in the US on the expectation of multiple rate cuts in 2024, a hawkish FOMC meeting tomorrow may be met with volatility and profit taking . The DXY dollar index has rallied as highlighted premarket in anticipation
The FTSE100 and FTSE250 are in pullback mode slipping below their 8EMAs and may well check their 21EMAs: the AIM All-Share dipping below its 200MA again although momentums is improving in the small cap space
The heatmap at 0900 shows fairly broad selling with 412 advancers to 540 decliners while almost 750 are unch – hence a wait and see.
A stronger dollar has dented the miners as 43 sell to 19 risers with 59 unch while Oil & Gas names see 25 risers to 35 fallers with 42 unch despite the firmer oil prices
In momentum terms, the continued strength the likes of Tobacco, Insurance and Food Producers highlights the defensive mood
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UK heatmap intraday price changes at 0900
Daily/Weekly Sector Momentum with Tobacco, Insurance and Food Producers showing strength while Renewables, Consumer Services and Household/Home Construction show weakness
Pre Market- Dollar Strengthens eyes 104: brent above $86 : BTC sells to $64K
Dollar continued to strengthen eyeing the 104 level and clearing the 50 and 200 MA though there may be some resistance around the 103.8 level - This has caused all of the metals to pull back as highlighted in the weekly wrap although gold has continued to hold around the 8 EMA level. Continued dollar strength into the FOMC meeting tomorrow will likely pressure gold with a potential pullback to the 21 EMA level around $2119
Oil has continued its breakout clearing the $86 level with a potential to break $87 and the top of the rising channel: this lifted oilers yesterday but dented travel and retail
Dollar clears 50 and 200MA
Oil above $86 towards top of rising channel
NESF One to Watch
NextEnergy Solar Fund - See RNS
significant catalysts for a double bottom reversal set-up chart
maiden standalone 50MW energy storage asset, named Camilla, has successfully begun commercial operations. This is a significant milestone for the Company as it increases NESF's total installed net capacity above 1GW to 1,014MW.
