Bloomberg reports this morning that talks between the UK and EU, which should have seen a Brexit deal done and dusted by the end of October, will continue through to mid-November. Knowing how the EU works, no doubt it will culminate in some late-night last-minute fudge.
Yesterday the Bank of Cyprus was pleased to announce a ‘transformative’ deal to sell a portfolio of Non-Performing Loans to US private equity giant Apollo. The portfolio, of 14,000 loans, fetched €1.4 billion or equivalent to 48 cents in the euro. Worth noting that yesterday Apollo also announced that it was setting aside $2.6 billion to take Aspen Insurance private. Apollo has about $270 billion assets under management.
DAX 30
Momentum is only just positive as we trade in the middle of this summer’s range.
SHORT TERM TRADER: Short at 12635; stop above 12650. Target 12200.
POSITION TAKER: Square.
FTSE 100
The MACD barely bullish with yesterday’s hanging man candle. Alarmist talk from Bank of America that central banks and sovereign wealth funds were likely to sell £100 billion UK gilts sending sterling sliding to levels not seen since the mid-1980s.
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.
SHORT TERM TRADER: Stopped out at a small loss.
POSITION TAKER: Short at 2805; stop above 2900. Target 2555.
BRITISH POUND/US DOLLAR
Momentum is bullish as we consolidate between 1.2800 and 1.2935, one notch above this year’s low.
SHORT TERM TRADER: Small long at 1.2740; stop below 1.2700. Target 1.3000.
POSITION TAKER: Square.
EURO/US DOLLAR
Momentum is more bullish than it’s been all summer as we break the dominant series of descending highs over the period.
SHORT TERM TRADER: Long at 1.1620; stop below 1.1530. Target 1.1800.
POSITION TAKER: Square.
GOLD
Mixed picture with the MACD bullish but a small bearish engulfing candle yesterday just under Fibonacci 38 per cent retracement resistance. I know I don’t want to own gold, but I worry that this year’s US dollar strength is likely to reverse some more.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
