Homebuilders lay the groundwork for a positive FTSE session

EEuropean markets have had a cautiously positive start to the week as investors mull the prospect of another round of sanctions against Russia as evidence emerges of widespread atrocities against civilians, as well as other crimes of war in the regions surrounding kyiv.


UK homebuilders help lead gains on the FTSE100 following a report that the government dropped its request for individual firms to contribute to a siding cleanup fund, with top performers led by Barratt Developments, Persimmon Group and Berkeley.

Ted Baker shares are higher after the company announced it was launching a formal sale process, having rejected two previous offers from Sycamore Partners Management last month, the most recent of which valued the business at £254million, compared to its valuation in 2018 when the business was worth £1.3billion.

Its most recent fourth-quarter figures showed the group’s sales were up 35% from a year ago, and were up from the 18% rise in the third quarter. Margins were also better, increasing by 350 basis points across all channels. Inventory levels also improved, while store and retail sales showed signs of recovery, with volumes starting to return to pre-Covid levels.

Airlines are under pressure following reports of delays and cancellations caused by a spike in covid cases among staff, which in turn is causing major disruption at airports, across the UK.

Ryanair the shares are also lower despite the fact that he expects to see a net loss of between 350 and 400 million euros for the year to 31st March 2022. It also said it carried 11.2 million people last month, compared to 10.9 million people in March 2019, with an annual number of 97 million passengers, still well below the number pre -149 million pandemic.

Also down, Airbus saw its shares tumble after announcing it was looking to slow production of its A350.


US markets opened mixed as investors ponder the prospect of further sanctions on Russia and a rebound in oil prices from last week’s steep falls.

Twitter shares jumped more than 25% at the open after it was confirmed that Tesla CEO Elon Musk had bought a passive 9.2% stake in the underperforming social media platform Twitter in what has to be one of the most oxymoronically ironic announcements of all time.

Say what you like about Elon Musk but passive is not an adjective that might apply to the CEO of Tesla. With a stake now worth more than $2.8 billion, one can probably expect this so-called passive participation to become much more audible as it pressures Twitter management to be less censored.

You’re here also announced that it delivered more than 310,000 vehicles in its first quarter, below expectations but still at a record high.

Starbucks Shares also fell after new CEO Howard Scholz canceled the remaining buyout program in a bid to refocus funds more on the underlying business and its people.

Chinese-listed stocks also got another head start after Chinese authorities said they may consider relaxing some of the confidentiality rules around audit oversight, which would make them less likely to be delisted from US exchanges. The tastes of Alibaba, Tencent Music and JD.com pushed higher.


The euro slipped below the 1.1000 level against the US dollar as the prospect of new Russian energy sanctions weighs on the single currency, amid concerns over the damage new measures could inflict on the European economy.

The Norwegian krone is one of the best performers thanks to the rebound in energy prices, while we also see modest gains for the Australian dollar thanks to the rise in commodity prices. The Aussie is also in bid ahead of tomorrow’s RBA rate decision, where we could see a heavily hawkish pivot, given the recent sharp rises in inflationary pressure.


Oil prices rebounded from last week’s sharp falls, with U.S. prices climbing back above $100 a barrel, following renewed calls for new sanctions on Russian oil and gas imports. That appears to outweigh concerns over Chinese demand after the whole of Shanghai, a city of 25 million, was quarantined.

Gold prices continue to find support above the 50-day MA, despite resilience in US yields, but the upside finds resistance at the $1,970 level ahead of the release of the final minutes. Fed on Wednesday.


A key theme over the past week has been the build-up to a vote by US lawmakers around a vote to legalize marijuana at the federal level. This was passed by a small majority on Friday, justifying the heightened interest in both specific stocks and CMC Markets’ basket of proprietary cannabis stocks over the past few days. Canopy Growth, listed in Canada – with the appropriate symbol of WEED – printed daily volume above 300% on Monday against a weekly equivalent of 162%, while the volume of CMC’s cannabis basket reached 279% at the start of the week. . We can say that it is possible that interest will remain high here in the coming days.

In terms of fiat currencies, the dollar and the yen have been the center of attention, after the pair hit a six-year high and then began a retreat. Key points to watch here are divergent fundamentals, with the Bank of Japan maintaining this dovish stance on policy, bond buying and the yen still looking like a safe haven, while the greenback promises a much better yield . Activity was weighted again towards the start of the week with volatility hovering around 15% but still leading the asset class on Friday, printing at 9.85% from 8.7% on the month. .

Commodities have also seen active trading, although there is a general air that the market has become too wide. Key to this cohort was lean hog prices, where traders were watching the release of data from the US Department of Agriculture on current herd size on Thursday. A contraction was expected, but the print indicated a rather more dramatic decline, leading the underlying to post a brief spike higher, before coming back. On Friday, daily theft stood at 96.1% against 71.26% for the month.

Leaving Bitcoin aside, cryptos also saw some action this week, seemingly triggered by the end of the fiscal year in many countries on Thursday. This led to a surge in sales, which notably boosted Ripple’s daily volume to 156% in the latter part of the week. Over the weekend there was something of a rally, suggesting that investors simply needed to crystallize gains ahead of the new quarter and therefore theft could remain elevated through the start of the new week. here to get the daily volatility report delivered to your inbox


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