As Japan prepares to welcome British PM Theresa May today its people were alerted early this morning via radio and TV programs of a missile launched by North Korea flying over the northern island of Hokkaido. Urged to take cover in solid buildings or underground bunkers the rocket eventually broke into pieces and fell into the Pacific Ocean 735 miles east of Japan. Their PM, Shinzo Abe, called it a ‘reckless action is an unprecedented, serious and grave threat to our nation’ and demanding a UN Security Council meeting later today.
In a guest opinion piece in newspaper City AM this morning, Neil Bennett points out that thought the FTSE 100 index is trading close to its record high at 7547, it’s worth only a fraction of its peak. That was in August 2000 where the London Stock Exchange had a main market value to £5.3 trillion. Today that’s down 26 per cent to £3.9 trillion in nominal terms; adjusting for inflation over the last 17 years it’s a lot less than that. Then add in the shrinking value of sterling and you’re left with a pretty sorry little specimen.
DAX 30
While consolidating neatly under horizontal resistance at 12345 last week’s little doji candle denotes some instability. Note that the latest round of Brexit talks in Brussels started last night with a slightly bad tempered spat between David Davis and Michel Barnier.
SHORT TERM TRADER: Small short at 12225; stop above 12355. Target 11550.
POSITION TAKER: Short at 12175; stop above 12355. Target 11500.
FTSE 100
Still sitting on horizontal support – but surely this cannot last much longer.
SHORT TERM TRADER: Square but will sell on a daily close below 7300.
POSITION TAKER: Short at 7300; stop above 7460. Target roughly 7000.
S&P 500
Another uneventful week on Wall Street as we hover just under the record high. As promised Amazon yesterday market its takeover of Whole Foods with prices slashed on a whole host of groceries.
SHORT TERM TRADER: Short at 2468; stop above 2475. Next target is pivotal support at 2400.
POSITION TAKER: Will sell on a weekly close below 2400.
BRITISH POUND/US DOLLAR
Last week’s little dragonfly doji hints that another interim low is in place.
SHORT TERM TRADER: New small long at 1.2950; stop below 1.2770. Target 1.3100.
POSITION TAKER: Square.
EURO/US DOLLAR
Rallying to this year’s highest level and its strongest against the US dollar since late December 2014, underlining just how many long US dollar positions have had to be cut.
SHORT TERM TRADER: Small long at 1.1745; stop below 1.1900. Next target 1.2200.
POSITION TAKER: Square.
GOLD
Safe-haven status, which the Japanese yen continues to hold, and a weaker US dollar has seen spot gold burst to this year’s strongest level – though still below 2016’s high.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
