European Open: Futures point higher but sentiment remains fragile

Asian Indices:

• Australia's ASX 200 index fell by -144.8 points (-1.94%) and currently trades at 7,328.50
• Japan's Nikkei 225 index has risen by 73 points (1.9349%) and currently trades at 26,784.27
• Hong Kong's Hang Seng index has risen by 375.62 points (1.89%) and currently trades at 20,244.96
• China's A50 Index has risen by 267.6 points (2.07%) and currently trades at 13,171.85

UK and Europe:

• UK's FTSE 100 futures are currently up 84 points (1.14%), the cash market is currently estimated to open at 7,464.54
• Euro STOXX 50 futures are currently up 59 points (1.6%), the cash market is currently estimated to open at 3,816.59
• Germany's DAX futures are currently up 211 points (1.51%), the cash market is currently estimated to open at 14,135.17

US Futures:

• DJI futures are currently up 60 points (0.18%)
• S&P 500 futures are currently up 28.5 points (0.21%)
• Nasdaq 100 futures are currently up 8.25 points (0.19%)

Asian equity markets were mostly higher overnight in line with Wall Street’s minor rebound. Yet the moves also lacked conviction so remains too soon to call an end to the selloff triggered by global growth concerns and a hawkish Fed. The ASX 200 was the one which bucked the trend as it played catch-up following a 3-day weekend.

Futures markets point to a higher open for Europe but with the DAX expected to open around 1.5% higher. But whether that is enough to turn the tide remains to be seen.

Despite a positive start, our bias for the DAX to rally al the way back to 15,000 has been invalidated during the recent selloff, although our interim target around 14,500 was reached. Momentum turned lower and a swing high formed at the 50-day eMA (also a lower high, or LH). Given prices remains below the 50 and 200-day eMA’s and now probing the April low, we’re looking for an eventual break of support and initial move to 13,600/800.

Keep in mind that futures markets point to a higher open, so bears could initially seek bearish setups up to Friday’s close at 14,143.

FTSE: Market Internals

The FTSE 100 faced the same selling pressures over the past two sessions as its global peers. Yet the minor bounce on Wall Street could see the downside lose momentum, especially as it nears the 200-day eMA.

FTSE 350: 4135.79 (-1.88%) 25 April 2022

• 231 (65.81%) stocks advanced and 108 (30.77%) declined
• 4 stocks rose to a new 52-week high, 21 fell to new lows
• 33.05% of stocks closed above their 200-day average
• 52.42% of stocks closed above their 50-day average
• 15.1% of stocks closed above their 20-day average

Outperformers:

• + 2.90% - Reckitt Benckiser Group PLC (RKT.L)
• + 2.80% - PureTech Health PLC (PRTC.L)
• + 1.85% - Unilever PLC (ULVR.L)

Underperformers:

• -9.15% - Blackrock World Mining Trust PLC (BRWM.L)
• -6.85% - Anglo American PLC (AAL.L)
• -6.50% - Tullow Oil PLC (TLW.L)

Up Next (Times in GMT)

Consumer confidence in the US continues to provide contrasting reports. Whilst the Michigan Survey paints a dire picture with confidence at its lowest in over 10-years, the US Confidence Board (released at 15:00 BST) seems more balanced. Whilst the ‘present situation’ component rose substantially in March, expectations were to the downside due to rising prices and Ukraine. And whilst the report noted that strong employment growth remains supported.

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