European Open: WTI drifts back up to $100, futures point higher

Asian Indices:

• Australia's ASX 200 index rose by 33.4 points (0.45%) and currently trades at 7,527.20
• Japan's Nikkei 225 index has risen by 139.87 points (0.4%) and currently trades at 34,818.27
• Hong Kong's Hang Seng index has risen by 353.98 points (1.61%) and currently trades at 22,393.53
• China's A50 Index has risen by 259.01 points (1.88%) and currently trades at 14,009.59

UK and Europe:

• UK's FTSE 100 futures are currently up 33 points (0.44%), the cash market is currently estimated to open at 7,570.90
• Euro STOXX 50 futures are currently up 10 points (0.26%), the cash market is currently estimated to open at 3,928.68
• Germany's DAX futures are currently up 47 points (0.32%), the cash market is currently estimated to open at 14,493.48

US Futures:

• DJI futures are currently up 18 points (0.05%)
• S&P 500 futures are currently up 1.75 points (0.01%)
• Nasdaq 100 futures are currently up 4.25 points (0.09%)

Kuroda still on board with a weaker yen

According to a Reuters article, ‘sources’ close to BOJ governor Kuroda think he is unlikely to step back from fighting a stronger yen despite being one of the few on the board who still preaches a weaker yen. AUD/JPY has risen to just shy of Friday’s high, a break oh which assumes trend continuation in line with its falling wedge breakout on the hourly chart

FTSE: Market Internals

The FTSE 100 rallied for a fourth consecutive week although its upside volatility has clearly wared over the past two. Daily trading activity was below its 20-day average over the past three days and Thursday’s bearish engulfing candle (which failed to test 7600) shows an immediate hesitancy to push higher. With that said, futures are pointing to a higher open around 7,560 which will place prices less than a day’s average trading range away from testing that key level, so it remains an important level to watch.

FTSE 350: 4229.67 (0.29%), 04 April 2022

Outperformers:

• +7.46% - Restaurant Group PLC (RTN.L)
• +5.26% - 888 Holdings PLC (888.L)
• +4.72% - Ferrexpo PLC (FXPO.L)

Underperformers:

• -25.5% - RHI Magnesita NV (RHIM.L)
• -4.04% - Provident Financial PLC (PFG.L)
• -3.32% - Electrocomponents PLC (ECM.L)

WTI tries to build a base around $98

Oil prices have effectively been rangebound since Friday but there are some early signs that the market is trying to form a base around $98. A small bullish pinbar narked the low on Friday around that level and has continued to support today, and prices broken above trend resistance less than three hours ago. Moreover, a bullish divergence is forming on the RSI and the market trades just -26c from $100.

For today we’re looking for a break above $100 to bring the $101.50 high into focus, ahead of the weekly pivot point around $103. A break beneath $97.78 invalidates that view. 

Up Next (Times in GMT)

We have not top-tier data scheduled for today, although Germany’s trade balance data is work a look in light of the war in Ukraine. At 14:00 Euro zone finance ministers meet on G20, banking union. BOE’s Deputy Governor Cunliffe speaks at the European Economics and Finance Centre at 15:00. The Fed’s John Williams speaks at 18:00.

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