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Morning Markets Report – Friday 8th October 2021

Wall Street stocks reversed losses to trade higher and Asian markets posted gains.

 

  • Risk appetite strengthened on Thursday as the tentative dip in gas prices helped underpin sentiment. There were still notable concerns surrounding global inflation trends and US bond yields moved higher.
  • Wall Street equities posted solid gains ahead of Friday’s US jobs data. 
  • Global bourses made headway with a measured advance in Shanghai, but property-sector concerns were still important.
  • Euro-zone equities posted strong gains on Thursday as a decline in gas prices helped alleviate fears over an energy crisis. There were also expectations that the construction sector will be boosted by very low interest rates and global bourses posted strong gains.
  • Major UK stocks posted solid gains on Thursday on hopes that gas prices had peaked. There were still reservations over the threat of higher interest rates, but global gains boosted confidence and the FTSE 100 index gained 1.2%.  
  • Wall Street sentiment was boosted by the deal to avoid an immediate debt default. There was also an easing of immediate energy fears, although inflation concerns persisted. Overall, the S&P 500 index gained 0.8%.
  • US futures were little changed on Friday while Asian markets held firm.
  • Japan’s Nikkei 225 index gained 1.4% as the yen lost ground with a 0.9% advance for the Australian ASX index.
  • China’s Shanghai index traded 0.3% higher in late trading as the domestic market re-opened, but there were notable concerns surrounding the property sector and the Hong Kong Hang Seng index was marginally lower in late trading.

 

 

Stock to watch today

 

BHP Billiton has pulled back sharply in recent weeks and has retracted to a key 50% Fibonacci retracement level at 1828p. Buyers have stepped in as was evident on the 20th September 2021 when a strong hammer candle was posted, indicating the potential for a reversal. We have since seen some consolidation on the daily chart and the formation of a triangle pattern. Yesterday the shares broke up through the triangle and closed above the 10 day exponential moving average. This could lead to a continuation higher in the short term and for the overall bullish trend to resume.

 

 

CCM Opinion: BUY

Buy between 1870 – 1920p

Stop: 1770p

Target: 2230p

 

The value of shares can fall as well as rise; you may not get back the amount you invested. Past performance is no guarantee of future performance. Capital is invested at risk. This document is published by Clear Capital Markets and does not constitute a solicitation or personal recommendation for the purchase or sale of investment. The investments referred to may not be suitable for all investors. Any data or views given should not be construed as investment advice. Every effort is made to ensure the accuracy of the information, but no assurance or warranties are given. Clear Capital Markets Limited is authorised and regulated by the Financial Conduct Authority FRN 706689

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