Tech names looking stronger

The USD/CAD looks bearish. Bearish candlesticks show stronger bodies than bullish and we can also see a sort of H&S pattern on h1 timeframe. In mid-morning trading, the FTSE 100 is 30 points higher, while tech futures have made a solid start to the day.

• Nasdaq futures perk up after weeks of losses.

• FTSE 100 lifted by value names once more.

• Dow plots fresh record highs.

European stocks are seeing muted gains in early trading, while Nasdaq futures have roared ahead in an early bid to make up some lost ground after their hefty pullback since the middle of February. The firesale in many big tech names has been driven by fears of how higher yields will damage the attractiveness of these high flyers, and the improved prospects for stocks that will benefit from reopening economies, but with many now much cheaper (compared to where they were) some will be eyeing up the sector, even if only for a quick rebound. The situation in the Nasdaq looks similar to late October, the last major pullback in the index, and with the mood-music around big tech turning distinctly sour the conditions are there for just the kind of rebound that will catch many by surprise.

It is not time to write off the value section of the market however, and the FTSE 100’s morning gainers prove that there is still plenty of appetite to buy into these rather more pedestrian names. They might not have the glamour of big tech, but the ‘recovering economy’ theme is there to see among stocks like Rightmove, JD Sports and others. Plus, precious metals miner Fresnillo has finally found favour after a miserable six months that have seen it lose a third of its value. At least silver prices have held up better, providing a more positive narrative for the firm to contrast the unending weakness in the gold price.

Ahead of the open, we expect the Dow to start at 32,000, up 198 points from Monday’s close and seemingly-poised for a new push into fresh all-time highs.