European Open: Futures markets open lower as bears retain their grip

Article By: ,  Market Analyst

Asian Indices:

  • Australia's ASX 200 index fell by -132.4 points (-1.9%) and currently trades at 6,829.20
  • Japan's Nikkei 225 index has fallen by -778.65 points (-2.88%) and currently trades at 26,232.68
  • Hong Kong's Hang Seng index has fallen by -625.1 points (-2.57%) and currently trades at 23,664.80
  • China's A50 Index has fallen by -67.95 points (-0.45%) and currently trades at 15,158.36

UK and Europe:

  • UK's FTSE 100 futures are currently down -138.5 points (-1.87%), the cash market is currently estimated to open at 7,331.28
  • Euro STOXX 50 futures are currently down -111 points (-2.67%), the cash market is currently estimated to open at 4,053.60
  • Germany's DAX futures are currently down -359 points (-2.32%), the cash market is currently estimated to open at 15,100.39

US Futures:

  • DJI futures are currently down -398 points (-1.17%)
  • S&P 500 futures are currently down -222.5 points (-1.57%)
  • Nasdaq 100 futures are currently down -59.25 points (-1.36%)

Equity markets continued to sell off overnight with traders having to quickly adjust to their red monitors. The majority of benchmarks fell over -1% with some indices in China and Japan falling over -2%. The Nikkei is a clear underperformer as it also has the stronger yen to contend with.

The short end of the yield curve continued to rise in the US overnight, with the 2-year hitting a fresh high of 1.196%. The Fed signalled they’re on track to move ahead with hikes, with some now speculating five hikes this year. The US dollar moved higher against all expect the yen, driving NZD/USD to a fresh 14-month low and now trades just above 0.6600. New Zealand’s inflation report was overshadowed by the risk-off tone which has continued to sweep its way across global markets. NZD was broadly lower against all majors and the Australian dollar was down against al except the Kiwi.

STOXX 600 – corrective bounce complete?

We noted in a video on Monday that prices were on the cusp of breaking trend support. It fell hard and fast, found support around 455 and a two-day countertrend rally stalled around the monthly S1, just below the broken trendline. Given futures markets are pointing lower then we suspect its two-day bounce has complete its move and prices are now poised to break to new lows.

 

EuroStoxx Index>

Metals feel the weight of FOMC

Gold suffered its worst session in 18 yesterday, and extended losses overnight. Currently trading around 1815 it looks like bears want to drive this back to 1800, near its 200-day eMA. Silver is currently lower for a fifth consecutive day and trades around 23.30.

Elsewhere in commodities, WTI has pulled back to 86.50 after reaching a high of 88.00 yesterday. Its daily trend structure remains bullish above 82.0

FTSE 350: Market Internals

FTSE 350: 4218.37 (1.33%) 26 January 2022

  • 266 (75.78%) stocks advanced and 81 (23.08%) declined
  • 5 stocks rose to a new 52-week high, 6 fell to new lows
  • 36.18% of stocks closed above their 200-day average
  • 28.49% of stocks closed above their 50-day average
  • 7.69% of stocks closed above their 20-day average

Outperformers:

  • + 8.60% - 4imprint Group PLC (FOUR.L)
  • + 7.39% - International Consolidated Airlines Group SA (ICAG.L)
  • + 6.35% - Baillie Gifford US Growth Trust PLC (USAB.L)

Underperformers:

  • -14.5% - Fresnillo PLC (FRES.L)
  • -9.39% - Quilter PLC (QLT.L)
  • -6.86% - Playtech PLC (PTEC.L)

 

Up Next (Times in GMT)

 

How to trade with City Index

You can easily trade with City Index by using these four easy steps:

  1. Open an account, or log in if you’re already a customer 

    Open an account in the UK
    Open an account in Australia
    Open an account in Singapore

  2. Search for the company you want to trade in our award-winning platform 
  3. Choose your position and size, and your stop and limit levels 
  4. Place the trade

 

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

© City Index 2024