FTSE 100 Support 6628 6612 6589 6542 6523
FTSE 100 Resistance 6652 6673 6678 6699 6713 6784

Good morning. So rather than look panicked they left interest rates at 0.5% and also the asset purchase scheme remained as is. The bears got a bit of a boost after the initial rise to 6740 (was a just a bit too early with the short at 6723) and brought the FTSE 100 down slowly over the rest of the day. Overnight has seen some more weakness creep in, and the charts are still looking bearish for the moment with 6589 the next daily support where we have the 10 day Bianca.

US & Asia Overnight from Bloomberg

• Japan’s currency set for biggest weekly drop in 17 years
• China’s economic growth stabilized in second quarter

Asian stocks rose for a fifth day and South Korea’s won strengthened as Chinese economic data beat estimates amid an upbeat start to the corporate earnings season. Japanese equities rallied and the yen fell on prospects for stimulus.

The MSCI Asia Pacific Index was on the brink of setting a new high for the year as the Hong Kong-listed shares of Chinese companies extended their biggest weekly gain in four months. Japan’s Topix index was set for its best week since 2009 and the yen traded near pre-Brexit levels amid speculation so-called helicopter money will be used to revive the economy. The pound rose against all 31 major peers and the won was Asia’s best-performing currency. Oil fell and gold was poised for its first weekly drop since May.

More than $4 trillion has been added to the value of global equities since June 27 as the U.S. economy performs better than analysts expected and speculation mounts that policy makers will take steps to limit the fallout from the U.K.’s vote to leave the European Union. Laurence D. Fink, who runs the world’s largest asset manager as chief executive officer of BlackRock Inc., said the stock rally is unlikely to be sustained without support from corporate profits. The earnings season got off to a promising start this week, with JPMorgan Chase & Co. and Alcoa Inc. exceeding estimates along with Daimler AG.

“We’re seeing better-than-expected growth, particularly in the U.S. economy, and we’ve got a higher likelihood of central bank stimulus,” Michael McCarthy, chief market strategist at CMC Markets in Sydney, told Bloomberg Radio. “These ideas are opposing but at the moment they are both supporting equities. At some point there is going to have to be a resolution of that.”

China’s economic growth held at 6.7 percent in the second quarter, beating the 6.6 percent expansion forecast in a Bloomberg survey. Figures for factory output, retail sales and new lending also topped estimates, while investment slowed. The U.S. also has a data dump coming on Friday, with gauges of household spending, inflation, industrial production and consumer confidence scheduled.

Stocks

The MSCI Asia Pacific Index added 0.5 percent as of 12:42 p.m. Tokyo time, rising 4.5 percent this week, the most since April. The Hang Seng China Enterprises Index climbed 0.7 percent, boosting this week’s advance to more than 6 percent. The Shanghai Composite Index held near a three-month high.

“The market has been more positive about equities because global liquidity is ample and economic data are improving,” said Peter So, co-head of research at CCB International Securities Ltd. in Hong Kong.

The Topix climbed 0.9 percent, on track for a weekly gain of more than 9 percent. Fast Retailing Co. jumped 18 percent, the most since 1998, after the operator of the Uniqlo clothing chain posted a profit that beat estimates. Nintendo Co. was set for a record weekly gain of more than 60 percent after its Pokemon Go mobile game proved an instant hit. Line Corp. surged 40 percent in its Japan trading debut after the messaging company raised more than $1 billion in the biggest technology initial public offering of the year.

Futures on the S&P 500 Index were little changed, after the benchmark ended the last session at a record. Analysts project a 5.7 percent earnings decline at S&P 500 firms in the second quarter, which would make it a fifth straight drop, the longest streak since 2009. Wells Fargo & Co. and Citigroup are among firms posting results on Friday.

Currencies

The yen slipped 0.8 percent to 106.23 per dollar, headed for a 5.6 percent weekly loss that would be its steepest slide in 17 years. Ben S. Bernanke, the former chairman of the Federal Reserve, met Japanese leaders in Tokyo this week and was reported to have previously floated the idea of the nation issuing perpetual bonds. Officials on Wednesday denied a Sankei newspaper report that they’re considering the policy known as helicopter money — which involves direct financing of government spending by the central bank.

The kiwi was down 0.6 percent, set for a 2 percent weekly loss. Bets on the Reserve Bank of New Zealand cutting benchmark rates in August rose last session after the central bank said it will issue an unscheduled assessment of the economy next week.

The pound climbed 0.8 percent, poised for a 3.8 percent weekly advance that would mark its best performance since 2009. The Bank of England kept its benchmark interest rate at a record-low 0.5 percent on Thursday and Theresa May took over as prime minister a day earlier, restoring some calm to U.K. politics after last month’s Brexit vote prompted David Cameron’s resignation. The contest to replace him was cut short after May’s rival dropped out of the race.

South Korea’s won rose 0.6 percent to its strongest level since April, while Taiwan’s dollar climbed to an 11-month high. Both economies count China as their biggest export market.

Commodities

Crude oil fell 0.2 percent to $45.57 a barrel in New York. Prices almost doubled between January and June, signaling that markets were finally healing as falling U.S. output, rising demand and disruptions from Nigeria to Canada all helped eliminate a global production surplus. Now, as consumption falters and halted supplies return, analysts from BNP Paribas SA and Societe Generale SA warn prices may sink towards $40.

Gold fell 0.5 percent, headed for a weekly loss of 2.7 percent. Copper traded near an 11-week high and zinc climbed following the release of China’s economic data.

Rubber rallied 1.7 percent in Tokyo, boosting this week’s advance to more than 8 percent. Prices have been boosted by the plunge in the yen and also speculation about stimulus measures in some of the world’s leading economies.

Bonds

Treasuries snapped a record-setting rally this week as the early resolution of Britain’s leadership vacuum eased the flight to safety that was sparked by the June 23 referendum. The Bloomberg Treasury Index was poised for its biggest loss in eight months and the benchmark 10-year yield climbed 19 basis points to 1.55 percent, after sinking to an all-time low of 1.32 percent on July 6. The yield rose one basis point on Friday. “We were really worried about Brexit, but suddenly U.K. politics have stabilized,” said Kim Youngsung, the head of overseas investment in Seoul at South Korea’s Government Employees Pension Service, which has $13.2 billion in assets. “Yields probably won’t fall further.” [Bloomberg]

FTSE 100 Outlook and Prediction

I mentioned yesterday that I was looking to short the rallies and think thats the case again today, especially if we pop up to test the pivot area at 6678. We have the 30min coral slightly below that as well at 6671 so I think shorts around this area are worth going for, assuming we get a pop up at the open. There is a fair bit of US news out at 13:30 today so likely to get a bit choppy around then, the main one being retail sales for June forecast to be 0.1% down from 0.5% previously. As usual on a Friday, expect the unexpected and keep the stops tight (some also do smaller stakes). The 2 hour chart is still bearish, though the price did pop up above the 6700 level on anticipation of the rate cut yesterday. Think here was a lot of buy the rumour of a cut going on yesterday. So, fairly simple plan really, looking to short around the 6670/6680 area and maybe hold for a while if it drops off and can get the stops to breakeven or better for a run down to 6500 or lower