Mid-morning trading has seen the FTSE 100 shed 20 points, while US futures point towards opening losses as well.
Stocks continue to digest their huge gains from earlier in the week, as the rally moves into more of a mature phase following the initial enthusiasm of Monday and Tuesday. With little in the way of major news to drive price movement stocks have been reliant on the few earnings reports coming out, but also on watching Omicron-related developments. The UK’s move to new restrictions points towards the expected playbook for the weeks to come, and could well put some pressure on equity markets in what is normally a fairly positive time. For major indices in Europe and the US the knowledge that three vaccine doses can successfully combat the variant should help investors to retain an optimistic view of the situation, but the imperative is to ensure more vaccines reach the rest of the world, to avoid a cycle of new variants appearing regularly.
Unsurprisingly airline and aviation stocks are struggling in London, on expectations that there will be further restrictions announced around the globe. The cheery tone of Rolls-Royce’s update this morning has not been matched by the shares, which remain under pressure, having lost 16% over the past month versus a flat performance for the FTSE 100.
Ahead of the open, we expect the Dow to start at 35,612, down 142 points on Wednesday’s close.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Recommended Content
Editors’ Picks
EUR/USD slides toward 1.1100 as USD recovery continues
EUR/USD stays under bearish pressure and declines toward 1.1100 on Wednesday. In the absence of fundamental drivers, the cautious market mood allows the US Dollar to gather recovery momentum and forces the pair to stay on the back foot.
GBP/USD closes in on 1.3200 on renewed USD strength
GBP/USD is keeping the red and pushing lower toward 1.3200 on Wednesday, undermined by a broad US Dollar rebound. Markets turn anxious ahead of speeches from the BoE and the Fed policymakers later in the day.
Gold pulls back to $2,500 as USD recovers
Gold exchanges hands just above $2,500 on Wednesday after sliding lower due to a rebound in the US Dollar (USD). Given Gold is mainly priced in USD, any strength in the Greenback tends to weigh on its price.
FLOKI price is poised for a rally after breaking above the descending trendline
FLOKI price broke above the descending trendline and rallied 10%. At the time of writing on Wednesday, it continued its ongoing rally and trades 4.4% at $0.00015. Additionally, the suggestion of on-chain data supports the bullish trend, as evidenced by active, dormant wallets.
Three fundamentals for the week: Focus on the fragility of the US economy Premium
US Consumer confidence data will provide a gauge of how consumers are feeling. Jobless claims are in focus after Fed Chair Powell's dovish speech. Investors will look to the core PCE index to confirm that inflation is falling.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.