Joined 28/03/23 02:58
Indices continue their recovery The bounceback from Friday’s lows continues for indices, as fears about a banking crisis recede. Source: Bloomberg Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 28 March 2023 FTSE 100 reclaims 7500 The index rallied off the 200-day simple moving average (SMA) on Monday, having dipped below it on Friday. Should the buyers be able to drive it back to 7600 then a higher low may well have been formed. This bolsters the bullish view and could see the price claw back more of the lost ground of the past six weeks. In that case 8000 would be an initial target. A more bearish view requires a drop back below 7300, and then on below last week’s 7200 low. Source: ProRealTime DAX makes headway Friday’s session saw the price rally off the 100-day SMA, and it has pushed higher on Monday too. This continues to build a picture of a higher low, with a move above the 50-day SMA the bullish view will receive further reinforcement, and then the price can contemplate a move back to the March highs and potentially higher. This view would be negated with a move back below the 100-day SMA, and then on below the 14,500 area that marked the low last week. Source: ProRealTime Dow pushes back to the 200-day MA Monday’s price action saw a tentative recovery to the 200-day SMA, helping to recoup some of the recent losses. This begins to suggest a low has been formed for the time being and that another attempt at a move higher is underway. This initially targets the 50-day SMA, and then on to the 33,500 high from the beginning of the month. It would require a reversal below 31,500 and a close below 31,300 to suggest that the lows of the past two weeks have been conclusively broken to the downside. Source: ProRealTime
Early Morning Call: FTSE 100 opens higher amid Ocado, Bellway earnings reports Ocado's retail revenue rose 3.4% in the first quarter while Bellway's revenue rose to a record level, but reservation rate fell by 31.7%. Jeremy Naylor | Analyst, London | Publication date: Tuesday 28 March 2023 Equity market overview Equity markets mostly rose yesterday, with only the Nasdaq ending the session lower. Fears of a banking crisis continued to ease, as First Citizens Bancshares agreed to acquire most of Silicon Valley Bank. Overnight, indices traded higher in the APAC region. Australia’s S&P/ASX 200 lead gains as the country’s retail sales index rose 0.2% in February, compared to a revised 1.8% rise in January, beating median expectations of a 0.1% rise. Year-on-year (YoY), retail sales rose 6.4%. With inflation at 7.4% in January in the country, this means that retail sales volumes are contracting against price increases. The market now awaits tomorrow's Monthly CPI indicator, forecast to ease to an annual rate of 7.1% in February. Reserve Bank of Australia (RBA) chief, Philip Lowe has said the central bank was closer to pausing its rate increases. The central bank has already lifted rates by 350 basis points to an 11-year peak of 3.6%. The RBA decision is next Tuesday, 4 April. Macroeconomics A few macroeconomic indicators are expected this afternoon across the Atlantic. At 1.30pm expect wholesale inventories and goods trade balance, followed half an hour later by the S&P/Case-Shiller home price and house price index, and at 3pm by the Conference board consumer confidence. Earnings Elsewhere on the equity markets Ocado's retail revenue rose 3.4% to £584 million in the first quarter (Q1). Average orders per week rose 3.6% and the average basket value came flat. Bellway's revenue rose to a record level for the group, but reservation rate fell by 31.7%. In the US, Walgreens Boots Alliance (WBA) is scheduled to post earnings for the second quarter (Q2) before the market open. Analysts expect earnings of $1.10 per share, on revenue of just over $33.5 billion. But over and above earnings, investors want to know more about the future of Boots. Some of them, as well as some WBA board members, want the group to prioritise the US market, and move away from traditional retail to focus on US private health care. This would mean either a spinoff of Boots or even a straightforward sale. It is not the first time WBA has wanted to part with its UK branch. It tried to sell Boots for the first time in January 2022. The price tag was then £7bn, but Walgreens Boots Alliance did not find a buyer and decided to call it off five months later. Tonight, after the close of the US markets, Micron Technology, an all-sessions stock on the IG platform, is poised to post a loss of 66 cents per share. Revenue is expected to continue declining to $3.74bn. Three months ago sales fell 41% to just over $4bn. The semiconductor industry is still suffering from distortion originating from the Covid-19 pandemic. Orders soared during 2020 and 2021 to supply a technology boom, pushing Micron and other chip makers to produce more. Now, in the context of fears of a recession, they are left with excess inventories and are being forced to wind down their capital investment budget. Commodities Oil prices are easing this morning after a rally yesterday that took WTI and Brent over $72 and $77 respectively. Oil prices rose at their fastest pace in four months, due to a conjunction of news. The acquisition of SBV by First Citizens Bank triggered a wave of optimism across asset classes. Also, according to an annual forecast by a research unit of China National Petroleum, China's crude oil imports are expected to rise 6.2% in 2023, as the world's second largest economy continues on its road to recovery. New York Cocoa's rally continues. This is partly due to tight supplies from Ivory Coast, the world's largest producer of cocoa, where port arrivals have been running behind last year's pace. However, that rally might not last, as there is no production issue here. Ivory Coast expects a good mid-crop, and its neighbour and the world's second-largest producer Ghana is poised to produce a larger crop this season. This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
For more up to date news on how markets will open, the latest earnings and economic news, watch IGTV live in the platform at 07:30am UK. Today’s coverage: Indices: Europe expected mixed after gains yesterday on a rebound in DBK. Wall St mainly up although NDAQ saw a drop. Asia mixed HSI best performer as China mkts rebounded FX: AUD climbed or held recent gains as retail sales came in marginally better than forecast, but economists now expecting a pause in Aussie rates next time. USD down for a second day Equities: Earnings – OCDO BWY WG WGBA MU Commods: NY Cocoa at 3yr highs on tight supplies. Gold little moved. Oil holding yesterday’s marked gains
just out of curiosity, what is the biggest contract size available through IG?
Link to comment
0 answers to this question
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!Register a new account
Already have an account? Sign in here.Sign In Now