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Morning Markets Report – Wednesday 27th October 2021

Major UK stocks were underpinned by underlying strength in commodity prices and firm global risk conditions.

Caution prevailed on Tuesday ahead of key central bank meetings over the next 10 days. Overall risk appetite held firm as Wall Street equities posted net gains.

There were, however, still reservations over the Chinese property sector as domestic equities dipped on Wednesday. The dollar secured limited net gains ahead of next week’s Federal Reserve policy decision.

EUR/USD was held close to 1.1600 as it failed to make headway given expectations of a dovish ECB stance. Sterling retreated from intra-day highs as GBP/USD again failed to break 1.3830 with EUR/GBP also recovering from 20-month lows.

Commodity currencies overall retreated as the US dollar secured a net advance. The Australian dollar strengthened after the higher than expected core inflation data, but retreated from initial highs.

Oil prices continued to find strong support on dips, but pressure for a correction limited net support with losses on Wednesday. Precious metals retreated on a firm dollar with gold back below $1,800 per ounce.

Euro-zone equities posted solid gains on Tuesday with further expectations of positive earnings growth. Global risk conditions were also supportive and there were expectations that the ECB would maintain an accommodative policy.

Overall, the Eurostoxx 50 index posted a fresh record high with a 0.85% advance as all major bourses made headway.

Major UK stocks were underpinned by underlying strength in commodity prices and firm global risk conditions. Earnings data was broadly supportive with the FTSE 100 index posting a 20-month high with a 0.75% gain.

Wall Street stocks were again underpinned by optimism over earnings data. The macro environment was little changed on the day with the S&P 500 index posting a net advance of 0.2% to a fresh record high.

Sentiment in Asia was hampered by further concerns over China’s real estate sector.

China’s Shanghai index traded 1.0% lower in late trading with a 1.7% retreat for Hong Kong’s Hang Seng index.

Japan’s Nikkei 2225 index declined 0.1% with a slight gain for the Australian ASX index.



Stock to watch today


BT Group closed sharply higher yesterday as rumours of a takeover emerged. The move higher came just as the shares reached the important 61.8% Fibonacci support level at 137.45. This could trigger an uptick in momentum in the short term. There is an unfilled gap on the upside at 158.8p, which is a nice target to aim for. Look to enter on a dip is possible.



CCM Opinion: BUY

Buy between 139 – 143p

Stop: 131.5p

Target: 158.5p


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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