HSBC Holdings plc posted lower than expected profit growth and higher operating costs this morning, warning that the outlook for its key markets – greater China and the UK – are likely to be tricky this year, Reuters reports. CEO John Flint also flagged up trade tensions, a less rosy economic outlook and the uncertain path for interest rates as barriers to a better business outlook this year.
As has been the case in nearly every single month since January 1993, Switzerland has managed a trade surplus again in December 2018. Data released this morning show that, despite imports increasing, the landlocked nation managed to post a surplus of $3.04 billion, up from $1.96 billion in November, but below the record high of CHF 3.29 billion in September 2016.
DAX 30
Absolutely no momentum in this index. Yesterday German stock market regulator Bafin banned the short-selling of shares in Wirecard following reports of fraud in its Singapore office. Munich prosecutors have also launched an inquiry into potential market manipulation by the Financial Times reporter who broke the story. The newspaper flatly denies any wrongdoing while the tech firm denies allegations of fraud.
SHORT TERM TRADER: Small short at 11180; stop above 11400. First target 10600.
POSITION TAKER: Short at 10955; stop above 11400. Target 9350.
FTSE 100
Back down at the psychological 7200 and no longer overbought in what smacks of a false break above this chart point.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Overbought again and close to levels we peaked at in November and December.
SHORT TERM TRADER: New short at 2775; stop a bit above 2820. Target 2600.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
As if Britain didn’t have enough to be getting on with, now we have a new political party – we think – called Independent – for now.
SHORT TERM TRADER: New long at 1.2920; stop below 1.2770. Target 1.3180.
POSITION TAKER: Square.
EURO/US DOLLAR
Bearish momentum has eased a little as we try to cling to last year’s lows.
SHORT TERM TRADER: New long at 1.1305; stop below 1.1220. Target 1.1480.
POSITION TAKER: Square.
GOLD
Almost overbought again as we probe this year’s high.
SHORT TERM TRADER: Small short at 1317; stop above 1328. Target 1240.
POSITION TAKER: Square.
