Yesterday the European Banking Authority warned that new capital regulations mean that of the 88 banks in 17 countries they looked at these must raise €40 billion over the next few years to comply with new rules. The largest banks which operate internationally will need another 14.1 per cent in cash, share capital and core capital; the others must come up with an extra 3.9 per cent.
Also yesterday the European Securities and Markets Authority gave banks a little longer to comply with Mifid II rules which were due to come in this January. They’ve got 6 months to make sure that they and their clients all have legal entity identifiers (LEI). The UK’s FCA supported the decision because of the need ‘for a smooth transition’.
DAX 30
Bullish momentum disappearing in a jiffy as prices retreat ahead of the record high. Another case of buy the rumour, sell the fact?
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Holding slightly precariously just ahead of the record high.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Holding at the highs and less overbought.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Really rather tedious.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Pushing on up a little as today Teresa May pushes into Warsaw after being forced to give her friend and deputy Damian Green the shove.
SHORT TERM TRADER: Took profits on my long euro position as I want to be totally square until the New Year.
POSITION TAKER: Square.
GOLD
Stuck at first Fibonacci retracement resistance.
SHORT TERM TRADER: Square.
POSITION TAKER: Cut my short position at a loss as want to be square over the holidays.
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.
