Canada’s foreign minister Chrystia Freeland, the one who upset the Saudis earlier this month on human rights issues, travels to the US capital today to continue trade talks. White House economic advisor Larry Kudlow has warned that Canada could face auto tariffs if it doesn’t agree to a ‘fair deal’. This follows the announcement yesterday that the US had done a bilateral trade deal with Mexico (though few details have emerged) which will not be called NAFTA.
British campaign group the Taxpayers’ Alliance says public sector pensions, which are unfunded and paid for by the taxpayer, are worth three times as much as their private sector equivalent. A 25-year-old starting on the average UK wage of £28,600 could retire at 68 on £17,563 after making annual contributions of 8.5 per cent of salary. A private sector worker would get just £6,412 by contributing the same, the difference being down to the government adding in another 12.5 per cent of public sector salary.
DAX 30
The market rallied on Monday as August’s German IFO survey was considerably more upbeat than expected – probably on President Trump’s softening on threatened auto tariffs.
SHORT TERM TRADER: Short at 12635; stop above 12650. Target 12200.
POSITION TAKER: Square.
FTSE 100
IG marked prices higher yesterday in line with US markets.
SHORT TERM TRADER: Square.
POSITION TAKER: Small short at 7799; stop well above 7800. First target 7400, then 7100.
S&P 500
Overbought again as we inch to a new record high on negligible breadth.
SHORT TERM TRADER: Stopped out at a small loss.
POSITION TAKER: Short at 2805; stop above 2900. Target 2555.
BRITISH POUND/US DOLLAR
Consolidating at the end of last week so that we didn’t get the morning star 3-candle pattern (on the weekly chart) we had hoped and nor did the commodity channel index turn positive.
SHORT TERM TRADER: Small long at 1.2740; stop below 1.2650. Target 1.3000.
POSITION TAKER: Square.
EURO/US DOLLAR
Back up at the Fibonacci 38 per cent retracement level, and worth £0.9075, having completed a morning star 3-candle pattern on the weekly chart.
SHORT TERM TRADER: New long on Friday’s close at 1.1620; stop below 1.1400. Target 1.1800.
POSITION TAKER: Square.
GOLD
Easing off oversold territory with almost an inside weekly candle.
SHORT TERM TRADER: Square.
POSITION TAKER: Stopped out making a decent profit on the trade on Friday’s break above 1200.
