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Morning Markets Report – Thursday 28th October 2021

Major UK equities gained an element of support from the budget

US and global bond yields declined sharply on Wednesday with evidence of a position squeeze. There were still underlying concerns over US and global inflation trends.

Wall Street equities struggled for direction with limited net losses. Asian markets also lost ground as underlying growth and inflation concerns persisted.

The dollar overall was mixed with a lack of clear direction ahead of next week’s Fed meeting. EURUSD settled just above 1.1600 ahead of Thursday’s ECB policy meeting. Sterling lost ground as UK yields moved lower following the budget speech.

The Australian dollar was broadly resilient before a limited retreat on Thursday. The Canadian dollar strengthened sharply after a more hawkish than expected Bank of Canada statement, but failed to hold intra-day highs with USD/CAD support at 1.2300.

Oil prices posted net losses, but with further buying on dips amid supply concerns. Gold recovered losses to post net gains as bond yields retreated. Bitcoin dipped below $60,000 amid fears over tighter regulation.

Euro-zone equities were unable to maintain momentum on Wednesday with sentiment dampened by weaker than expected earnings data. Overall sentiment was still firm which limited potential selling pressure.

Major UK equities gained an element of support from the budget, although a slide in yields had a bigger impact in supporting confidence. The FTSE 100 index still retreated 0.3% amid losses in the mining sector.

Wall Street sentiment held firm on Wednesday with further earnings optimism. There was, however, pressure for a correction with a retreat in energy and financial stocks leading to a 0.5% retreat in the S&P 500 index.

Asian sentiment was generally cautious with supply-side and inflation trends in focus.

Japan’s Nikkei 225 index declined 1.0% with limited reaction to the Bank of Japan announcement while the Australian ASX index declined 0.25% as commodities retreated slightly.

China’s Shanghai index traded 1.1% lower in late trading amid a further focus on the energy crisis with a 0.2% retreat for the Hong Kong Hang Seng index.



Stock to watch today

Taylor Wimpey rallied sharply yesterday on above average volume. Support has been found at 143.65p twice over the past few months. On the upside we have short term resistance at 159.75p, this looks set to be challenged in the short term. Should this resistance break, then further upside is likely to be seen. Upside targets are up at 180p.


CCM Opinion: BUY

Buy between 153 – 157p

Stop: 146.80p

Target: 180p



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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