The strength in energy markets continued to underpin major UK stocks on Tuesday.
Confidence in US growth strengthened during Tuesday with robust US services-sector data. Wall Street equities also posted a solid advance during the day.
There was a more defensive mood on Wednesday as high energy prices and inflation concerns pushed US bond yields to 3-month highs. US futures moved lower and Asian bourses lost ground amid inflation concerns.
Euro-zone equities struggled to make any headway in early trading, but buying interest gradually intensified with notable buying support in the banking sector and bourses posted significant gains amid a Wall Street advance.
The strength in energy markets continued to underpin major UK stocks on Tuesday. The latest business confidence data also helped underpin sentiment with a 0.9% gain for the FTSE 100 index, despite important reservations surrounding inflation.
Wall Street equities posted significant gains on Tuesday with a rebound in the tech sector helping to underpin confidence. The S&P 500 index gained 1.0%, although there were still underlying inflation concerns.
US futures moved lower on Wednesday as bond yields moved higher and Asian markets lost ground.
Japan’s Nikkei 225 index closed 1.1% lower with a 0.6% retreat for the Australian ASX index.
Chinese bourses remained closed with Hong Kong’s Hang Seng index 0.7% lower in late trading.
Stock to watch today
JD Sports is trading in a long term bullish channel and is showing no sign of slowing over the medium term. The shares have recently pulled back towards support at 985p, which has almost immediately been met with strong buying interest.
The hammer candle formation posted on the 1st October 2021 indicates that the minor correction from the highs at 1164p could be over and that the uptrend will resume from here. A move to new highs is favoured from current levels.
CCM Opinion: BUY
Buy between 1040 – 1080p
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