CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

European Open: The week begins with an extension of risk-off

Article By: ,  Market Analyst
May 9, 2022 5:56 AM

Asian Indices:

  • Australia's ASX 200 index fell by -82.4 points (-1.14%) and currently trades at 7,123.20
  • Japan's Nikkei 225 index has fallen by -609.26 points (-2.26%) and currently trades at 26,392.17
  • Hong Kong's Hang Seng index has fallen by -791.44 points (-3.81%) and currently trades at 20,001.96
  • China's A50 Index has fallen by -159.14 points (-1.21%) and currently trades at 12,944.84

 

UK and Europe:

  • UK's FTSE 100 futures are currently down -53.5 points (-0.72%), the cash market is currently estimated to open at 7,334.44
  • Euro STOXX 50 futures are currently down -52 points (-1.44%), the cash market is currently estimated to open at 3,577.17
  • Germany's DAX futures are currently down -182 points (-1.33%), the cash market is currently estimated to open at 13,492.29

 

US Futures:

  • DJI futures are currently down -330 points (-1.01%)
  • S&P 500 futures are currently down -115 points (-0.91%)
  • Nasdaq 100 futures are currently down -42 points (-1.02%)

 

Asian equity markets tracked Wall Street lower overnight as the week kicked off with a risk-off tone. The well-telegraphed series of 50-bps hikes leaves investors concerned that the Fed are chasing inflation and may fail to stimmy it. And with growth prospects continuing to falter then the odds of a global recession over the next 12-months is on the rise.

 

China’s HSCE fell over -4% and the Hang Seng was off by around -3.8%. The ASX 200 fell -1.2% in line with our bearish bias outlined in the Asian open report, and the majority of major benchmarks across Asia were in the red. This also saw bitcoin futures fall to their lowest level since January, and gold also trade lower as it failed to attract safe-haven flows.

 

AUD and NZD dragged lower with commodities

Prospects of weak global growth and lockdowns across China which are showing no signs of being eased has seen sentiment turn against key commodities such as copper and platinum. We noted in this weeks COT report that traders flipped to net-short exposure on copper and prices have since fallen to retest last week’s low.

AUD and NZD are the weakest majors with the Aussie falling to just 10-pips above 70c whilst NZD/USD has fallen to a 2-year low. AUD/JPY broken beneath the 92.26 low on Friday to confirm our bearish bias and has fallen to a 4-day low overnight. Our next target is the support zone around 90.50.

 

 

We’re also keeping an eye on NZD/JPY as it has broken above a key support level during Asian trade. Since breaking out of an ascending triangle at the top of its trend, a series of lower highs formed and then prices met resistance at the monthly pivot point. Our bias remains bearish beneath the Friday’s high and now looking for prices to fall to the support zone around 82.50.

 

FTSE: Market Internals

FTSE 350: 4114.56 (-1.51%), 09 May 2022

  • 7 stocks rose to a new 52-week high, 74 fell to new lows
  • 56 (16.00%) stocks advanced, 290 (82.86%) stocks declined
  • 25.43% of stocks closed above their 200-day average
  • 36.29% of stocks closed above their 50-day average
  • 10.29% of stocks closed above their 20-day average

 

Outperformers:

  • +18.4% - 4imprint Group PLC (FOUR.L)
  • +5.9% - Hiscox Ltd (HSX.L)
  • +5.9% - Beazley PLC (BEZG.L)

 

Underperformers:

  • -8.3% - International Consolidated Airlines Group SA (ICAG.L)
  • -7.5% - Rightmove PLC (RMV.L)
  • -8.3% - SEGRO PLC (SGRO.L)

 

Up Next (Times in GMT)

 

How to trade with City Index

You can easily trade with City Index by using these four easy steps:

  1. Open an account, or log in if you’re already a customer 

    • Open an account in the UK
    • Open an account in Australia
    • Open an account in Singapore

  2. Search for the company you want to trade in our award-winning platform 
  3. Choose your position and size, and your stop and limit levels 
  4. Place the trade

 

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024