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Morning Report – Tuesday 5th October 2021

Soaring energy prices continued to drive market sentiment as inflation concerns increased.

 

Risk appetite dipped sharply at the New York open on Monday with further reservations over global cost and supply-side pressures.

Soaring energy prices continued to drive market sentiment as inflation concerns increased.

Wall Street equities posted significant losses despite a limited recovery from intra-day lows.

Euro-zone equities attempted to rally after Friday’s Wall Street gains, but underlying sentiment remained weaker amid concerns over the impact of high energy prices.  As Wall Street losses accelerated, bourses were subjected to significant selling.

Major UK stocks were resilient on Monday with significant support from gains in oil prices, although there were also concerns over the wider impact of soaring energy prices. The FTSE 100 index found support near 7,000 and closed 0.2% lower.

Wall Street stocks dipped sharply in early trading with further concerns over inflation pressures and rising costs. There was also sharp selling pressure in the tech sector with the S&P 500 index declining 1.3%, although there was a recovery from intra-day lows.

US futures edged higher on Tuesday, but overall sentiment remained cautious in Asia.

Japan’s Nikkei 225 index declined 2.2% with a 0.4% retreat for the Australian ASX index despite the strong trade data.

Chinese markets remained closed for a holiday with slight losses for Hong Kong’s Hang Seng index in late trading.

 

 

Stock to watch today

 

Barratt Developments is trading at a crucial level on the daily chart. The shares have consolidated in recent months as price has drifted towards an important 38.2% Fibonacci retracement level. We also have a horizontal support on offer at around 636p, as well as uptrend support that has been in place since the MArch 2020 lows. In recent weeks the share price has began to form a wedge pattern, a break to the upside would confirm the bullish bias and should send prices higher in the short to medium term.

 

CCM Opinion: BUY

Buy between 640 – 660p

Stop: 608p

Target: 720p

 

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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