The Financial Times reports that based on data released this morning Turkey saw its economic growth slow dramatically in the last 3 months of last year; it shrank by 3 per cent Y/Y and, seasonally adjusted, by 2.4 per cent – the worst reading since 2009. It is the second consecutive quarterly contraction and takes growth for the year as a whole to just 2.6 per cent from a more usual 7.4 per cent growth in 2017.
US aeroplane-maker Boeing takes out full-page adverts in newspapers today plugging ‘The Future of Aircraft is built here’ 777-9 and 787-10 Dreamliner. This follows the crash of a 737 MAX 8 plane in Ethiopia over the weekend, and the subsequent grounding of all this type of aircraft in Ethiopia and today in China.
DAX 30
Stalling at the 50 per cent retracement level and neckline of a giant head and shoulders top after this calendar year’s corrective bounce. The German government has told Deutsche Bank and Commerzbank to enter into merger talks, which they appear to have done reluctantly. What the politicians seem to have forgotten is that ramming two ailing banks together does not necessarily make for a stronger lender, nor does it give Germany any capital markets capability.
SHORT TERM TRADER: Short at 11600; stop well above 11800. First target 10800.
POSITION TAKER: Square
FTSE 100
A rather big dragonfly doji last week as the market stalls around the 50 per cent retracement area.
SHORT TERM TRADER: Small short at 7120; stop above 7275. Target 6800.
POSITION TAKER: Square.
S&P 500
A decent-sized red candlestick last week following 10 consecutive weekly rallies this year. Certainly marks a change of tone and at an area from where the market has retreated several times in the past
SHORT TERM TRADER: Short at 2775; stop a bit above 2820. Target 2600.
POSITION TAKER: Short at 2795; stop above 2825. Target 2600.
BRITISH POUND/US DOLLAR
Brexit negotiations drag on in typical EU last-minute.com fashion. Either British negotiators are so useless they cannot dream up something decent, or the EU’s proposal is so terrible that no politician of any hue could sign it into being.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Edging itself off this year’s low on Friday as France’s gilets jaunes protest for a 17th consecutive weekend. The Daily Telegraph reports that ex-UK PM Tony Blair has been secretly advising President Macron as to how to force Britain into staying in the European Union.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Last week’s hammer has stemmed the slump as we ponder whether to get back into the old channel.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 1328; stop above 1326. Target 1255.
