Good morning. Fairly decent shorts off the resistance levels yesterday at 6830 and 6840, though neither turned into a runner for a dip to the pivot so wasn’t able to gain the max from them, still, taking profit at 20 or so then setting the stop to break-even does mean you bank some and then make the trade risk free, which is always a good thing! We had Draghi and Yellen both talking yesterday which lead to quite a bit of chop, with Draghi announcing further ECB stimulus in June is an option. So not quite out of the woods yet then if thats still on the table!
There is some UK news out at 09:30 this morning which will lead to a bit of choppiness as its around contraction, manufacturing and production.
Asia Overnight from Bloomberg
Most Asian stocks rose as Macau casino operators rebounded in Hong Kong and Canon Inc. said it would buy back shares, outweighing slumps for Great Wall Motor Co. and Wilmar International Ltd.
The MSCI Asia Pacific Index gained 0.3 percent to 138.07 as of 10:22 a.m. in Hong Kong, paring its drop this week to 0.3 percent. Five shares rose for every two that fell. The region’s largest equity markets, Hong Kong and Japan, have slumped the most of 24 developed markets tracked by Bloomberg this year amid concern Chinese economic growth is slowing and as the yen strengthened.
“Investors are focusing on getting a return of their capital,” Evan Lucas, a market strategist inMelbourne at IG Ltd., said by phone. “There’s no doubt global markets are starting to position themselves for a shift away from high growth into defensive sectors.”
Regional Gauges
Japan’s Topix index gained 0.8 percent, with more than 300 of the gauge’s constituents due to report earnings today. South Korea’s Kospi index rose 0.2 percent after the central bank left its benchmark interest rate at 2.5 percent for a 12th straight month.
Australia’s S&P/ASX 200 Index lost 0.3 percent, dragged lower by Australia & New Zealand Banking Group Ltd., trading without the right to the current dividend.
Envestra Ltd. surged 16 percent to A$1.3325 after billionaire Li Ka-shing’s Cheung Kong Group joined the battle for the Australian natural-gas distributor with a cash bid that values the firm at A$2.4 billion ($2.3 billion).
Hong Kong’s Hang Seng Index (HSI) added 0.2 percent, the Hang Seng China Enterprises Index of mainland shares traded in the city lost 0.2 percent. The Shanghai Composite Index declined 0.1 percent. Taiwan’s Taiex index slipped 0.3 percent. New Zealand’s NZX 50 Index dropped 0.1 percent, and Singapore’s Straits Times Index was little changed.
US Futures
Futures on the S&P 500 declined 0.1 percent today. The U.S. equities benchmark index yesterday lost 0.1 percent, with most shares falling, as technology shares erased a rally to sell off for a third straight day.
FTSE Outlook
We are pretty much on the pivot from live charts for today as I write this, being 6825. Yesterdays resistance was 6840, and that would likely cause bit of a stumble today if it reaches there again, with 6850 after that. There is a channel on the 10minute chart in play, the bottom of which is as this 6820 area, the top at 6837ish. I therefore expect an early bit of bull to the 6840 level. Going back to the 30 minute chart the next resistance is 6866 then we have the top of the Bianca channels in play, being around the 6900 area. If we start testing those levels we are not far off the all time highs at 6930. Imagine the headlines if we were to (a) break that level and (b) reach 7000. The media would be in a frenzy and trying to make everyone feel good about the economy. Shame its on just dodgy foundations having been pumped up with money and low interest rates. Anyway……
As its Friday today I won’t be trading too much, however a short of the resistance level at 6861 could be good if it gets there. To be frank the FTSE looks stronger than the S&P and Dax at the moment, the former which failed to break 1888 again.