PM Theresa May’s white-paper, thrashed our last weekend with senior Tories at Chequers, caused uproar in the House of Commons yesterday, which had to be suspended to give them time to read all 98 pages. Policy Chairman of the City of London Corporation said it was ‘a real blow for the UK’s financial services and related professional services sector’. President Trump flew in to the outskirts of London (to avoid potential protestors) saying something along the lines of not feeling welcome. Today he has an 8-page exclusive interview in The Sun newspaper, complete with podcast, suggesting that a UK/US trade deal might be off because of the white-paper; he also suggested Boris Johnson might make a good PM.
Ireland will now put into motion something the Church of England is currently debating. A bill was passed by the government requiring its sovereign wealth fund to sell off holdings in fossil fuel linked companies. Norway has already tasked its sovereign wealth fund to reduce its exposure to coal, reports the Financial Times.
DAX 30
Stuck at the 50 per cent retracement level.
SHORT TERM TRADER: Small short at 12450; stop above 12650. Target 12000, maybe 11800.
POSITION TAKER: Square.
FTSE 100
FTSE and sterling pretty much impervious to this week’s political manoeuvres.
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
We have now retraced 76.4 per cent of the slump early this year and are as overbought as we were early June.
SHORT TERM TRADER: Tiny short at 2787; stop above 2880. Target 2590.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Zero momentum as we snake along just under trend line resistance.
SHORT TERM TRADER: Small long position at 1.3230; stop below 1.3070. Target 1.3400, maybe 1.3550.
POSITION TAKER: Square.
EURO/US DOLLAR
Losing the will to live with this one though it’s holding up a lot better than some emerging market currencies.
SHORT TERM TRADER: Long at 1.1655; stop below 1.1600. First target 1.1850.
POSITION TAKER: Square.
GOLD
Momentum still bearish as we hold all too close to the watershed level at 1240.
SHORT TERM TRADER: Will sell on a daily close below 1240 today.
POSITION TAKER: Will also sell for a drop towards 1140.
