FTSE 100 Support 6691 6689 6679 6666 6655
FTSE 100 Resistance 6718 6725 6740 6827

Good morning.

US & Asia Overnight from Bloomberg

Shares of Asian raw-materials producers fell the most in two weeks as industrial metals prices dropped and crude oil traded below $45 a barrel, weighed down by a worsening outlook for the global economy. Turkey’s lira sank toward a record low amid the fallout of a failed coup attempt.

More shares declined than rose on the MSCI Asia Pacific as Japan’s Topix index retreated for the first time in more than a week. A gauge of Hong Kong shares was poised to enter a bull market. South Korea’s won weakened as the Bloomberg Dollar Spot Index headed for its best close since May, supported by rising odds of a U.S. interest-rate increase. The lira extended Tuesday’s plunge after authorities broadened a post-coup purge of Turkey’s institutions. Oil held near a two-month low as copper and nickel slid more than 1 percent.

A three-week run that’s boosted the value of global shares by more than $4.5 trillion has pushed valuations on Asia-Pacific stocks close to the highest level this year. Investors are assessing corporate earnings amid concern sluggish global economic growth will persist after the International Monetary Fund scrapped its forecast for a pickup in the pace of expansion this year. Goldman Sachs Group Inc. and Microsoft Corp. on Tuesday announced quarterly profits that surpassed analysts’ estimates, something achieved by 77 percent of the S&P 500 members to have reported so far.

“The rally is losing some momentum as the reporting season heats up,” said Niv Dagan, executive director at Peak Asset Management LLC in Melbourne. “We’re staying cautious and taking a little bit of profit off the table. With the equity rebound stalling, we are really looking for positive momentum from the reporting season” for the next leg up in stocks, he said.

Morgan Stanley, Intel Corp. and American Express Co. are among U.S. companies announcing results on Wednesday, while Europe has Electrolux AB and Iberdrola SA reporting. Gauges of euro-area consumer confidence and U.K. unemployment are also due, and Brazil’s central bank is expected to leave its benchmark interest rate unchanged at a monetary policy review.

Stocks

The MSCI Asia Pacific Index fell less than 0.1 percent as of 11:46 a.m. Tokyo time, having halted a six-day winning streak in the last session. A measure of raw-materials stocks lost more than 1 percent for the second day in a row. Japan’s Topix index declined 0.6 percent, retreating from its highest close in more than a month. The MSCI Hong Kong Index rose 0.6 percent and has now rebounded 20 percent from a three-year low recorded in January.

BHP Billiton Ltd. dropped as much as 4.1 percent in Sydney after the world’s biggest mining company said iron-ore production fell 7 percent from a year earlier during the last quarter. Cimic Group Ltd. tumbled 20 percent, the most in 12 years, after reporting a 31 percent slide in first-half revenue. Nintendo Co. fell 13 percent, after more than doubling in the two weeks through Tuesday as its Pokemon Go mobile game proved an instant hit.

S&P 500 Index futures were down 0.1 percent after the gauge slipped from an all-time high in the last session. The Dow Jones Industrial Average advanced for an eighth day, its longest rally in three years, and Microsoft rallied in after-hours trading following the release of its results.

Currencies

The lira fell as much as 0.7 percent to 3.0623 per dollar, within 0.5 percent of its all-time low reached in September. The currency has tumbled by about 6 percent since a failed coup attempt on Friday as authorities purged state institutions, the central bank lowered interest rates and and Moody’s Investors Service said it may lower the country’s credit rating to junk. President Recep Tayyip Erdogan is due to make an announcement on Wednesday that an official said would boost social cohesion and Turkey’s democratic credentials.

The Bloomberg Dollar Spot Index was little changed, after advancing 0.5 percent in the last session as a report showed new-home construction in the U.S. rose more than economists forecast in June. A Citigroup gauge that tracks the degree to which American data are exceeding projections is at an 18-month high and futures put the chance of a Federal Reserve rate increase this year at 43 percent, up from 9 percent at the start of this month.The won weakened 0.4 percent versus the dollar, the biggest loss among 16 major currencies. The ringgit dropped 0.5 percent as lower crude prices dimmed prospects for Malaysia’s oil exports. The yen rose 0.1 percent, buoyed by demand for haven assets, and the British pound lost 0.3 percent.

Commodities

Crude oil was little changed at $44.64 a barrel in New York, after sliding 2.8 percent over the last two trading days. While government data Wednesday is forecast to show supplies fell for a ninth week, stockpiles will still be more than 100 million barrels above the five-year seasonal average.

Nickel dropped as much as 1.7 percent in London, retreating from its highest close since October. Zinc slid from a 14-month high and copper lost 1 percent. China, the world’s top producer of refined copper, boosted output by 7.6 percent in the first half, data showed Wednesday.

Bonds

U.S. Treasuries due in a decade were little changed, yielding 1.55 percent. Similar-maturity sovereign debt in Japan was also steady and yielded minus 0.23 percent. [Bloomberg]

FTSE 100 Outlook and Prediction

After yesterday’s dip from the 6692 level for some points off that short, the bulls fought back and its looking like we might actually get a bit more upside now!

The 2 hour chart has gone bullish, with the support at 6688, and there are a few other supports at the 6690 area, mainly the daily pivot at 6689. As such, if we dip down to this area this morning then a long here could be good to target the major PRT level at 6725, and then R2 at 6740.