Mubadala, Abu Dhabi’s sovereign wealth fund, says: ‘’we have suspended any activities with Goldman Sachs pending [the] outcome of litigation. The only exceptions are engagements signed prior to the litigation, which will continue as per contractual terms’’, reports the Financial Times. This follows Thursday’s ‘show cause’ letter from the Malaysian Securities Commission demanding the investment bank explain why they should not face disciplinary action.
Hong Kong’s Securities and Futures Commission has banned Swiss banking giant UBS from carrying out any initial public offerings on their stock exchange for one year, a first for the city. It was also fined HK$375 million, as were Morgan Stanley (HK$224 million), Merrill Lynch (HK$128 million) and Standard Chartered (HK$59 million). They are accused of sloppy work and lack of due diligence when sponsoring or bookrunning IPOs, thus failing to protect investors. Last year US$ 36.3 billion was raised there in IPOs, the world’s top spot.
DAX 30
A tiny range this week and irrelevant price action despite more, weak German data. Today German think tank the IFO Institute halved its 2019 economic growth forecast from 1.1 to 0.5 per cent but, in typical ‘jam tomorrow’ style upped its 2020 view from 1.6 per cent to1.8 per cent.
SHORT TERM TRADER: Short at 11600; stop well above 11800. First target 10800.
POSITION TAKER: Square.
FTSE 100
The right shoulder of the potential head & shoulders top has gone on for too long and I think we’ll have to scotch that idea.
SHORT TERM TRADER: Small short at 7120; stop above 7275. Target 6800.
POSITION TAKER: Square.
S&P 500
Going nowhere despite grim numbers and outlook from GE while the US SEC started proceedings to sue VW and its ex-CEO Martin Winterkorn of a ‘massive fraud’ on US investors in its diesel gate emissions scandal.
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
Today, the Ides of March, the FX market is subdued, cable in the face of another important vote at Westminster (which is becoming an almost daily occurrence) and the New Zealand dollar with the murder of many in two mosques in Christchurch.
SHORT TERM TRADER: Might go long on a close above 1.3260 tonight.
POSITION TAKER: Square.
EURO/US DOLLAR
The MACD is trying to turn bullish as we rally in slow steps this week.
SHORT TERM TRADER: Tiny long at 1.1284; stop below 1.1800. Target 1.1460.
POSITION TAKER: Square.
GOLD
Bearish momentum’s all gone as we hover at the top of the old trend channel.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 1328; stop above 1320. Target 1255.
