Data released this morning in mainland China showed that, as in Q1, GDP kept on growing at an annualised rate of 6.9 per cent. In June industrial production stepped up a notch to 7.6 from 6.5 per cent growth in May. Likewise retail sales which increased by 11 per cent Y/Y versus 10.7 per cent the previous month. However, stock markets were not impressed and instead focused on this weekend’s meeting overseen by President Xi Jinping where it was decided to establish a State Council Financial Stability and Development Commission in an attempt to increase control of the economy and reduce financial risks.
The refinancing of a $1.2 billion loan to a hospitality complex, Doha Festival City, has been postponed said bankers in Qatar. With diplomatic ties cut since June 5th, and an embargo on trade, outside bankers’ appetite for the deal had waned considerably. Lack of interbank liquidity has meant that offered rates have risen by 50 basis points over the last month, Reuters reports.
DAX 30
dax170717
Stuck in the same little range that we’ve been in since late April and Brexit negotiations with Michel Barnier resume on today. These are likely to proceed at a glacial pace and agreements in principle can be undone at any point in time.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Hovering close to the record high and nothing interesting in this chart.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 7325; stop above 7455. First target 7125.
S&P 500
Both the S&P 500 and Dow Industrials closing at a new record high on Friday as a weaker US dollar begins to sink in. However, the MACD has not been bullish since early April and gains have been modest.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
A weekly close at the highest level since early September as cable retraces just over 38 per cent of the post-referendum collapse. Apparently building the next little step up in this year’s series and we have a reversal candle on EURGBP so that it looks as though the euro has formed an interim top at £0.8950 and is now back down at £0.8750.
SHORT TERM TRADER: Took profits on last week’s little long position and now wondering what to do.
POSITION TAKER: New small long at 1.3090 this morning; stop below 1.2880. Target 1.3400.
EURO/US DOLLAR
The strongest weekly close in a long time and right on horizontal resistance at the euro lags some other major currencies.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Bouncing from a loosely defined are of support and the chart generally getting messier.
SHORT TERM TRADER: Stopped out of short with a tiny profit.
POSITION TAKER: Small short at 1262; stop above 1235. Target 1200, maybe more.
