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Morning Markets Report – Tuesday 21st December 2021

Confidence dipped on Monday amid increased concerns over the Omicron impact.

Risk conditions have tended to dominate market moves during the next 24 hours. Confidence dipped on Monday amid increased concerns over the Omicron impact.

US bond yields remained at subdued levels amid unease over demand conditions.

European bourses also posted significant losses. Wall Street equities lost ground in early trading before recovering from intra-day lows. Risk appetite recovered from late in New York and there was a more constructive tone in Asia on Tuesday.

The dollar performance was again mixed with a net retreat against the Euro. EUR/USD stalled above 1.1300 and traded below this level on Tuesday. Sterling was hampered by vulnerable risk conditions, but GBP/USD again recovered from a test of 2021 lows near 1.3170.

Commodity currencies were hurt by weaker risk conditions before securing a tentative recovery as risk conditions dominated. Oil prices were undermined by the slide in risk appetite before staging a strong recovery. Precious metals failed to make headway despite a low level of US yields.

Euro-zone equities posted sharp loses on Monday as the wider slide in risk appetite undermined confidence. There were also further reservations over the Euro-zone outlook, especially with a surge in energy prices.

Major UK stocks opened sharply lower in response to the slide in global markets with fears over further domestic restrictions also an important element. There was a recovery from intra-day lows with the FTSE 100 index closing down 1.0%.

Wall Street stocks opened sharply lower amid disappointment over opposition to the US fiscal plans and unease surrounding Omicron developments. There was a tentative recovery late in the session with the S&P 500 index declining 1.1%.

US futures secured a further net gain on Tuesday which helped underpin confidence in Asia.

Japan’s Nikkei 225 index gained 2.1%, reversing Monday’s losses, while the Australian ASX index gained 0.85%.

China’s Shanghai index advanced 0.9% with the Hong Kong Hang Seng index 1.5% higher in late trading.



Stock to watch today

Reckitt Benckiser broke out of a triangle pattern to the upside yesterday. This suggests that a continuation higher in price is likely over the short term. We have resistance above at 6650p to target. We expect to see higher prices from current levels.


CCM Opinion: BUY

Buy between 6200 – 6300p

Stop: 6093p

Target: 6650p

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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