Yesterday the Indian government announced a $32 billion recapitalisation plan for state-owned banks. As elsewhere, these have been struggling under the weight of non-performing loans and weak balance sheets, CNBC reports. Earlier estimates had suggested that to comply with Basel III they would need between $40 billion and $65 billion. Government bonds to the tune of 1.35 trillion rupees would be issued and the remaining 760 billion rupees from the banks’ own fund raising efforts.
In London to open its new European headquarters in the Square Mile, Michael Bloomberg said, ‘we are opening two big expensive buildings. Would I have done it if I knew they were going to drop out [of the EU]? I’ve had some thoughts that maybe I wouldn’t have, but we are there, we are going to be very happy’. The pedestrianised street separating the two buildings has been named Bloomberg Arcade and contains a number of restaurants.
DAX 30
Continuing with the series of horrid little daily doji type candles and a bearish MACD.
SHORT TERM TRADER: Small short at 13045; stop above 13125. Target 12400.
POSITION TAKER: Square.
FTSE 100
Yesterday’s little shooting star type candle turned momentum just bearish.
SHORT TERM TRADER: Short at 7554; stop above 7600. Target 7320.
POSITION TAKER: Square.
S&P 500
Some divergence among US stock indices with the Dow Industrials setting a new record high yesterday – as it has been doing for much of this month – but the S&P 500 forming a Harami pair of candles Friday and Monday as it struggles with a too high RSI.
SHORT TERM TRADER: Small short at 2567; stop above 2600. Target 2500, maybe 2450.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Still struggling with the descending trend line which happens to be at the 1.3200 area, a level which had capped in early August. Watch for UK Q3 GDP data this morning.
SHORT TERM TRADER: Long at 1.3115; stop below 1.3100. Target 1.3400.
POSITION TAKER: Square.
EURO/US DOLLAR
Boring with zero momentum as we wait for the ECB meeting tomorrow.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
The MACD turned bearish yesterday as spot gold prices hover roughly in the middle of the range since mid-July. Anglo American yesterday lowered its production guidance for platinum.
SHORT TERM TRADER: Small short at 1275; stop well above 1300. Target 1220.
POSITION TAKER: Square.
Nicole Elliott is a long-standing Member of the Society of Technical Analysts and has taken over the IC’s trading coverage. She is regularly interviewed and quoted by the financial media, is a conference speaker, and author of several books on charting.
