S&P 500, FTSE 100 Evaluation and Information
- S&P 500 | Equities Stoop on Sizzling CPI
- FTSE 100 |Financial institution of England To Stay a Cautious Hiker
S&P 500 | Equities Stoop on Sizzling CPI
Rally sellers stay accountable for the fairness house and following the recent CPI print at 8.6%, the height inflation narrative has been kicked down the street. As such, draw back momentum in equities has accelerated as markets reprice a extra hawkish Federal Reserve with a attainable 75bps hike within the Summer season being mooted. Elsewhere, the most recent U. of Michigan Sentiment information crashing to a file low provides to the bearish sentiment and thus retains the YTD low at ~3800 in focus. As highlighted beforehand, with inflation remaining sticky and US yields concentrating on 3.20%, the bias stays to fade rallies.
S&P 500 Chart: Each day Time Body
Looking forward to subsequent week, the important thing focus would be the Fed fee choice on Wednesday, however it’s value allowing for that quarterly choice expiries may even be happening on Friday, also called quadruple witching. OpEx is an occasion the place inventory choices expire on the third week of the month, which all through 2021 had usually coincided with equities coming beneath strain. As proven within the picture under, the cumulative efficiency of the S&P 500 within the third week of every month in 2021 was -5.8% (Determine 1)
Supply: Refinitiv, DailyFX
FTSE 100 | Financial institution of England To Stay a Cautious Hiker
Whereas the recent US inflation print has exacerbated the sell-off for the FTSE, renewed lockdown considerations in China have additionally weighed on the index with China-exposed sectors underperforming. In flip, the index has damaged again under its 200DMA to check rising trendline help. As we glance forward, subsequent week will see the Financial institution of England increase charges for a fifth consecutive assembly. Nonetheless, whereas cash markets are pricing in 35bps value of tightening, in gentle of the Financial institution’s cautious stance, they’re prone to go for a 25bps fee rise.
FTSE 100 Chart: Each day Time Body
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