The parts might have been sourced from anywhere, shipped across the world, and then out again, but if it says Made in China on 279 product categories, the US will impose new tariffs as from today. Needless to say, the Asian giant has retaliated penny for penny on US steel, cars and medical equipment. It ‘resolutely opposes’ the tariffs and will file a complaint at the World Trade Organisation – a body that some say is already dysfunctional.
The UK construction industry set new records in 2017, according to ONS data. City AM reports that the sector employed a record 1.3 million people working on new buildings, scattered about the 314,590 different firms (up 6.2 per cent on 2016). The value of construction orders was also at a record high, and worth more than the pre-financial crisis peak, driven by high-value state contracts like HS2.
DAX 30
Momentum is still quite bearish as we hover around 12400, towards the lower end of the range in force since April 2017.
SHORT TERM TRADER: Short at 12635; stop above 12650. Target 12200.
POSITION TAKER: Square.
FTSE 100
Momentum has been bearish since mid-August as we trade close to some of the lowest levels since the trend channel started mid-May. Today Brexit secretary Dominic Raab will publish over 80 technical notices with suggestions of how business sectors should approach a no-deal outcome – one that most Britons now expect, according to a latest survey.
SHORT TERM TRADER: Square.
POSITION TAKER: Small short at 7799; stop well above 7800. First target 7400, then 7100.
S&P 500
Idle commentators got their record 3453 consecutive days of a US bull market. Note that momentum at this record high price is zero and the chart pattern since late July might turn out to be a broadening top.
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
Stalling yesterday with an undecided little doji yesterday, but momentum did turn marginally bullish.
SHORT TERM TRADER: Small long at 1.2740; stop below 1.2650. Target 1.3000.
POSITION TAKER: Square.
EURO/US DOLLAR
Closing inside the symmetrical triangle yesterday, and momentum might turn bullish today. Deutsche Bank CEO Christian Sewing felt the need yesterday to pop in and see his staff in London to reassure them that the City will remain a top financial centre post-Brexit. Goldman Sachs yesterday signed a £1.7 billion sale and 205-year leaseback on its new Blackfriars building.
SHORT TERM TRADER: Square for now.
POSITION TAKER: Square.
GOLD
Stalling with a little doji at first Fibonacci retracement and momentum is still decidedly bearish.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 1242; stop above 1200. Target 1140.
