This week the Financial Times reported that the Saudi Arabian central bank and state pension funds have instructed their overseas asset managers to sell all Canadian equities, bonds and cash holdings, ‘no matter the cost’. Yesterday Canadian PM Justin Trudeau noted that the kingdom had made some progress on human rights but that Canada would continue pressing on civil liberties. Also yesterday Saudi foreign minister al-Jubeir added that Ottawa knew what it needed to do to ‘fix its big mistake’, Reuters reports
Italian media are reporting that discussions about the Italian budget started Friday, earlier than September when they were expected. This sent yields on their massive sovereign debt market higher, 2-year BTPs up 40 basis points, forcing the central bank to buy the paper and stem the losses in its value.
DAX 30
Stopped dead in its tracks.
SHORT TERM TRADER: Short at 12635; stop above 12930. Target 12200.
POSITION TAKER: Square.
FTSE 100
Maybe I should give up on the trend channel idea and accept that all FTSE’s dong is moving between 7500 and 7800.
SHORT TERM TRADER: Short at 7610; stop above 7800. First target 7500.
POSITION TAKER: Small short at 7799; stop well above 7800. First target 7400, then 7100.
S&P 500
Stalled at Tuesday’s high, within pips of the all-time high.
SHORT TERM TRADER: Short at 2795; stop above 2880. Target 2600.
POSITION TAKER: Short at 2805; stop above 2900. Target 2555.
BRITISH POUND/US DOLLAR
Settling at a new low for this year’s range, below the longer term trend line support, and now a euro worth just over 90 pence.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Holding up better than sterling despite Italian issues and the commodity channel index turned positive on last night’s close.
SHORT TERM TRADER: New long at 1.1600; stop below 1.1500. Target 1.1800.
POSITION TAKER: Square.
GOLD
Only just holding and fractionally less oversold.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 1242; stop above 1240. Target 1140.
