The China Daily reported today that, following the US’s midnight imposition of a 25 per cent tax on Chinese goods imported into the USA, 545 different US goods finding their way into China will also be subject to import duties. The retaliatory move was, a ministry of commerce spokesman said, because the US had ‘’launched the largest trade war in economic history’’.
The Daily Telegraph reported yesterday that France’s market watchdog, Autorité des Marchés Financiers (AMF), warned in its annual report that ‘the world has never been so indebted and this debt has never been so risky. The number one risk for 2018 is a brutal correction of stock prices. The current valuation levels look high both by historical standards, and in fundamental terms across a whole range of indicators’. They are braced for a surge in bond yields and fear contagion will spread to Europe and snuff out what little and fragile recovery we’ve seen. Not quite sure where this is coming from as the US yield curve is at its flattest in 11 years.
DAX 30
Yesterday’s rally looks like a short squeeze and premature ahead of today’s US labour data.
SHORT TERM TRADER: Square.
POSITION TAKER: Stopped out of my short position yesterday.
FTSE 100
Fairly contained price action as we wait to see what PM May might haul out for her senior MPs at Chequers today.
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
A bit messy this morning as we hover at the 23 per cent Fibonacci retracement level. US June employment data due this afternoon.
SHORT TERM TRADER: Considering going short on today’s close.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Not even managing to hang on to what little bullish momentum it had.
SHORT TERM TRADER: Small position at 1.3230; stop below 1.3070. Target 1.3400, maybe 1.3550.
POSITION TAKER: Square.
EURO/US DOLLAR
Very little progress despite bullish momentum.
SHORT TERM TRADER: Long at 1.1655; stop below 1.1500. First target 1.1850.
POSITION TAKER: Square.
GOLD
Momentum’s still bearish despite this week’s little bounce.
SHORT TERM TRADER: Still looking to re-sell as close to 1280 as I can – which currently feels like a long way away.
POSITION TAKER: Square.
