Yesterday Malaysia’s finance minister Lim Guan Eng confirmed that three infrastructure projects backed by Chinese money were to be scotched; a fourth was cancelled today. This move is seen as an attempt to cut government spending and to speed up the probe into the scandal riddled 1 Malaysia Development Berhad investment fund, the Financial Times reports. The works will be reviewed to see ‘’whether they can proceed…under provisions of the contracts that we find completely lopsided’’.
Not only has Britain seen its hottest June in 42 years [who remembers the 1976 heat wave?] but scorching temperatures have been seen in North America, Asia and the Middle East. Ottawa hit a record 47C this week, Denver reached 40.5C equalling that city’s hottest day, and Ahvaz in Iran hit 54C.
DAX 30
Mucking about at current levels ahead of Sino-US trade tariffs on $34 billion of goods come into force tomorrow. IFO Institute director Gabriel Felbmayr said yesterday that Germany’s trade surplus ‘’is turning out to be an increasing issue, not just with the US but with other partners as well, and also within the European Union’’, CNBC reports.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 12550; stop well above 12465. Target 11900.
FTSE 100
Nothing happening in this chart though today Theresa May goes to Berlin to see Angela Merkel, ahead of her meeting with senior Tory MPs at Chequers tomorrow.
SHORT TERM TRADER: Short at a couple of levels; stop above well 7710. Target 7400.
POSITION TAKER: Small short at 7799; stop well above 7800. First target 7400, then 7100.
S&P 500
Back from yesterday’s public holiday and perilously close to trend line support and the 38 per cent Fibonacci retracement support level.
SHORT TERM TRADER: Might sell on a daily close clearly below 2690.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Trying to inch its way up off recent lows.
SHORT TERM TRADER: New little long position at yesterday’s close 1.3230; stop below 1.3070. Target 1.3400, maybe 1.3550.
POSITION TAKER: Square.
EURO/US DOLLAR
Another currency trying to recover, unlike some emerging market ones which were hit hard in Q2 2018.
SHORT TERM TRADER: Long at 1.1655; stop below 1.1500. First target 1.1850.
POSITION TAKER: Square.
GOLD
Bearish momentum dropped dramatically on this week’s little bounce.
SHORT TERM TRADER: Still looking to re-sell as close to 1280 as I can.
POSITION TAKER: Square.
