European Open: Equities Remain Buoyant, GBP Stands Firm Ahead Of UK Data

Asian securities took to Wall Street and traded higher overnight, while GBP pairs were slightly higher after yesterday’s strong session.

Asian Indices:

• Australia’s ASX 200 index rose 23.5 points (0.32%) and is currently trading at 7,326.00
• The Japanese Nikkei 225 index has grown by 96.86 points (0.31%) and is currently trading at 28,831.27
• Hong Kong’s Hang Seng index has grown by 112.12 points (0.39%) and is currently trading at 28,851.00

Great Britain and Europe:

• The UK’s FTSE 100 futures are currently up 12.5 points (0.18%), the cash market is currently opening at 7,100.68
• Euro STOXX 50 futures are currently up 8 points (0.2%), the cash market is currently opening at 4,104.07
• Germany’s future DAX is currently up 15 points (0.1%), the cash market is currently opening at 15,586.22

American Futures:

• DJI futures are currently up 19.1 points (0.06%)
• Future S&P 500 is currently up 18.25 points (0.13%)
• Nasdaq 100 futures are currently up 2.75 points (0.06%)

FTSE to Open Higher

Asian stocks were broadly higher with MSCI’s APAC (ex-Japanese) index growing 0.2% overnight, taking a positive lead from Wall Street. U.S. yields also continued to soften and fell to a three-month low, after stronger-than-expected inflation saw bond bears cover and lower yields lower.

Watch today’s video: Nasdaq Heads for Its Highs, Gold Bonuses

Futures markets opened higher, with futures FTE 100 rising 0.18% and suggesting another challenge on the 7100 handle. However, the monetary index is on track for a double dose of indecision this week, with a spinning Doji and an internal candle forming on the weekly chart. Two bearish hammers attempted (and failed) to break last week’s high, and the past three sessions have produced sell-off queues and one buying tail, while they closed in a 15-point range.

Hopefully this means it’s growing, but it could be just that time of year. Although this is also a reminder that the FTSE 100 closed less than 70% of the time in June over the past thirsty years. But soon, it remains an index to be smart and open to two-way trading.

FTSE 100 S / R Levels

• R4: 7117.74 – 7120
• R3: 7108
• R2: 7100-7101.50
• R1: 7090
• S1: 7080
• S2: 7060
• S3: 7046
• S4: 7040

FTSE 350: Market Interiors

FTSE 350: 7088.18 (0.10%) June 10, 2021

• 105 (29.91%) stocks progressed and 225 (64.10%) decreased
• 25 stocks rose to a new 52-week high, 1 fell to new lows
• 85.19% of shares closed above their 200-day average
• 21.94% of shares closed above their 20-day average

Exceeds:

• + 6.55% – BT Group PLC (BT.L)
• + 6.54% – Auto Trader Group PLC (AUTOA.L)
• + 5.86% – Mitie Group PLC (MTO.L)

Disabled:

• -5.93% – Aston Martin Lagonda Global Holdings PLC (AML.L)
• -4.59% – Restaurant Group PLC (RTN.L)
• -4.09% – RHI Magnesite NV (RHIM.VI)

Forex: GBP pairs remain firm ahead of the UK data

Over the past week the Swiss franc has been the best performer. Although it has attracted safe havens to the ECB meeting and the U.S. inflation report, it is interesting to see that it has largely held those gains. At the other end of the spectrum are the New Zealand and Canadian dollars, both of which have been suppressed by low oil prices.

EUR and CHF are currently the strongest majors, simply because they are recovering some of their losses from yesterday. Thin ranges elsewhere with AUD growing just 0.07% and JPY currently down -0.7%.

A UK data dump starts the European session at 07:00, so GBP pairs and the FTE will focus on day traders. The pound produced a bullish outside day against USD and EUR, although prices fell slightly overnight.

We look at GBP / JPY again ahead of the data, hoping that a broadly stronger-than-expected database may push the pair above resistance. We had hoped the downturn started earlier this week, however bears still worsened yesterday before producing a bullish Doji that bounced back and closed above the 20-day eMA. Its daily trend is firmly bullish overall, and large bullish H4 candlestick bulls are hoping to regain control. And if they can surpass Wednesday’s high (155.32), perhaps they may have managed to realize a move with its bullish trend.

Genres: Gold hovers around 1900

Gold is trying to remake over 1900 (which would also see it break trend resistance). As described in today’s video, we’re checking it out for either a higher break, or for prices to reverse as part of a symmetrical triangle into next week.

Yesterday was a volatile session for oil, which produced an external candle in the shape of an elongated hammer. A break of its low (68.66) confirms it as a bearish reversal, while a break of its high assumes an bullish hammer. If volatility is subdued today, it may be suitable for range traders within yesterday’s range.

Up Later (Times in BST)