Published today, a brand-new survey from the think tank New Financial rated countries, with a maximum score of 100, on how good they were at financial services. Using 42 different metrics, including managing assets, issuing equity, foreign exchange and derivatives, it gave the UK a score of 40, way ahead of any other European country. The next biggest rival was Luxembourg with a score of 26, Germany 23, France 22, Netherlands 21 and Ireland 19. Way out ahead was the US with 79, but it’s probably worth keeping an eye on China at 29. Underscoring EU banking woes this week both Societé Generale and ING have been fined for compliance and money laundering issues, Danske bank under investigation for years of laundering Russian money, Deutsche Bank to be dropped from the Eurostoxx 50 index because of the slump in its capitalisation, and Commerzbank likely to be dumped from the DAX 30.
Data out yesterday showed that South Africa this year suffered two consecutive quarterly declines in GDP, technically deemed as being in recession. Growth fell by 0.7 per cent in Q2, way below economic consensus of plus 0.6 per cent, and Q1 data was revised to down 2.6 per cent from a 2.2 per cent fall. Another emerging market currency on the skids.
DAX 30
Not spectacular but quite an interesting candle yesterday as we try the upside and fail, test the downside and also fail, but end up with a fairly large red body which turns momentum bearish. Remember that key secular support lies between 12000 and 11600; the close we get, the faster the moves will probably become.
SHORT TERM TRADER: Target at 12200 met and took a neat little profit. Now looking to re-sell on a weak weekly close.
POSITION TAKER: Square.
FTSE 100
Still clearly within the gently sloping down trend channel, but yesterday saw a fairly comprehensive rejection at first Fibonacci retracement resistance at 7533. A small bearish engulfing candle yesterday has added to bearish momentum with a drop below 7400 accelerating the move.
SHORT TERM TRADER: Short at 7455; stop above 7555; First target 7300.
POSITION TAKER: Took half of my profits just ahead of my first target at 7400; the other half I will run to 7100.
S&P 500
Massive media coverage yesterday as Amazon joined Apple in the US $1 trillion company club. No longer overbought, the S&P 500 has a series of little retracement support levels.
SHORT TERM TRADER: Square
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
A tiny little hammer candle yesterday keeping the MACD bullish, as cable tries to stem the recent fall.
SHORT TERM TRADER: Small long at 1.2925; stop below 1.2700. Target 1.3275.
POSITION TAKER: Square.
EURO/US DOLLAR
Another major currency with a little hammer, this one against the bottom of the old triangle pattern; MACD still bullish.
SHORT TERM TRADER: Square.
POSITION TAKER: Long at 1.1595; stop below 1.1485. Target 1.1785.
GOLD
Momentum’s just edged into bearish territory and I’m wondering which country will be next in being forced into selling gold reserves to prop up precarious finances.
SHORT TERM TRADER: Short at 1195; stop above 1220. First target 1160.
POSITION TAKER: Square.
