Asian Indices:
- Australia’s ASX 200 index fell by 0.2 points (0%) and currently trades at 7,410.80
- Japan’s Nikkei 225 index has fallen by -15.72 points (-0.06%) and currently trades at 24,635.86
- Hong Kong’s Hang Seng index has fallen by -15.72 points (-0.06%) and currently trades at 24,635.86
- China’s A50 Index has risen by 27.34 points (0.17%) and currently trades at 15,676.94
UK and Europe:
- UK’s FTSE 100 futures are currently down -9.5 points (-0.13%), the cash market is currently estimated to open at 7,257.19
- Euro STOXX 50 futures are currently down -2 points (-0.05%), the cash market is currently estimated to open at 4,281.82
- Germany’s DAX futures are currently down -14 points (-0.09%), the cash market is currently estimated to open at 15,923.00
US Futures:
- DJI futures are currently up 194.55 points (0.55%)
- S&P 500 futures are currently down -37.25 points (-0.23%)
- Nasdaq 100 futures are currently down -11.5 points (-0.25%)
Hawkish hike from RBNZ, although pace is yet to be determined
The 25 bps point hike was expected, and whilst it was a ‘hawkish hike’ as they have upped their OCR target, RBNZ hinted that future hikes will be on a per-meeting basis. As an export economy they don’t want a high exchange rate yet must also raise rates to fend hot inflation. Therefore, whilst their approach signals their hawkish intent over the longer-term, it helps keep a bit of a lid on NZD prices as speculators aren’t sure if another hike is imminent. Not bad really.
The Turkish Lira is falling off a cliff (faster than Turkeys from Thanksgiving shelves)
Just when you think the Lira has had enough of a beating, its volatility rising volatility unleashes further downside. The Lira hit new lows yesterday after President Erdogan doubled down on his fight against (but inadvertently actually with) inflation, and reports that he’s called for a meeting with the central bank heads sent their currency into another tailspin. USD/TRY rallied nearly 13% yesterday, and we cannot say the damage is yet complete.
That said, the last time USD/TRY rallied over 10% in a single day marked the top in 2018. But unless Erdogan swiftly changes his ways (which we doubt he will) then it’s hard to say the Lira will actually hit rock bottom today.
After falling -2.6% from last week’s high the FTSE 100 has found stability above 7200 and its 50-day eMA. A bullish inside day and subsequent bullish outside day have reaffirmed support around 7200, and a break above 7300 is now required to confirm a swing low is in place. Remembering that an inverted head and shoulder remains in play, which projects a target around 7500, we are seeking fresh opportunities for longs whilst prices hold above the 7180 – 7200 support zone.
Virgin Money UK PLC (VMUK) release earnings today at 18:00.
FTSE 350: 4153.16 (-0.45%) 19 November 2021
- 130 (37.04%) stocks advanced…
Read More: European Open: RBNZ Hike, FTSE Holds Support, Lira In Freefall