Good morning, hope you had a good long weekend. With the US trading yesterday there was a bit of movement in the FTSE futures, and the 6670 area looks a key short term resistance, with 6681 above. For today I am expecting a small rise before a dip to the pivot then a climb to bigger resistance at 6700/6710.
Fairly quiet really over the 4 days from a “news that will effect” the FTSE way; though this week sees some big hitters releasing their results in the US – Apple, Microsoft amongst others. Tomorrow sees the BOE release the latest minutes as well, though the press do seem to be bigging things up at the moment – usually a sign that bad news is just around the corner. The CEBR is forecasting continued global growth over the next two years, and said the economic backdrop for UK exports would be likely to become more supportive than at any time in the past eight years.
Asia Overnight from Bloomberg
Most Asian stocks rose as U.S. equities capped their longest stretch of gains since October and the yen extended losses, boosting the outlook for Japanese exporters.
The MSCI Asia Pacific Index added 0.1 percent to 138.94 as of 12:12 p.m. in Tokyo, with about nine shares rising for every eight that fell. Data on U.S. housing and regional factory output are due today, after an index of leading indicators climbed the most in four months. Markets inAustralia, New Zealand and Hong Kong resume trading after holidays, ahead of a report on Chinese manufacturing due tomorrow.
“China is going to probably be a little slower than a lot of people think, but overall the global economic recovery is going to continue,” Scott Wren, senior equity strategist in St. Louis for Wells Fargo Advisors LLC, which oversees about $1.3 trillion, told Bloomberg TV. Investors should be invested in “sectors that are sensitive to the economy.”
Regional Gauges
Japan’s Topix index rose 0.2 percent after the yen yesterday touched the weakest level against the dollar since April 8. Australia’s S&P/ASX 200 Index, Taiwan’s Taiex index and Singapore’s Straits Times Index added 0.4 percent. South Korea’s Kospi index gained 0.1 percent. Hong Kong’s Hang Seng Index fell 0.3 percent. New Zealand’s NZX 50 Index lost 0.1 percent.
China’s Shanghai Composite Index (SHCOMP) slipped 0.3 percent. A provisional reading of HSBC Holdings Plc and Markit Economics Ltd.’s China manufacturing purchasing managers’ index due tomorrow may show an increase to 48.3 for April from 48 in March, according to the median of 23 economists’ estimates compiled by Bloomberg. Readings below 50 signal contraction.
The MSCI Asia Pacific Index yesterday traded at 12.6 times estimated earnings, compared with 16 for the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.
Futures on the S&P 500 were little changed today. The U.S. equity benchmark gained 0.4 percent yesterday, rising for a fifth day, on improving earnings.
FTSE Outlook
The 2 key levels I am watching today are 6610/6600 and 6670/6681. If we get some volatility today I am expecting those area to be hit and for a dip and rise scenario today. We have a decent 30 minute channel in play, but it can sometimes be a bit tricky after bank holidays, especially 2 of them back to back. The lower range is the bottom of that channel and also the daily pivot area (6603) and the upper area is the level hit yesterday out of hours. If that does break then 6700 is the top of the Bianca 10 day. Things to do look fairly positive for a bit pif bullishness for the moment, off the back of Thursdays rise last week.