Data from Eurostat showed that in the final quarter of 2018 wages across the Eurozone grew at an average 3 per cent, slowing across nearly all member states and in all areas of employment. Wages in the Eurozone grew at an average 2.3 per cent, running at 2.4 per cent in Germany from Q3’s 2.7 per cent and at 1.9 per cent in France from 1.6 per cent. In Britain wages in the 3 months to January grew at 3.4 per cent as unemployment dropped to 3.9 per cent. Britain now has a record 32.7 million people in work, up almost half a million from a year ago. In typical establishment style Tej Parikh of the Institute of directors warned, ‘’with uncertainty around Brexit reaching a crescendo, firms are becoming more cagey over their hiring decisions’’.
Today at 21:58 GMT is the spring equinox marking the mid-point between summer and winter and the official start to Spring. Today will also, at 22:00 GMT, mark 1,000 days since the referendum result to leave the EU was announced. Light at the end of the tunnel?
DAX 30
Yesterday’s dodgy spike high formed a shooting star candle at exactly the level of the neckline of the huge head and shoulders top that’s been building since 2017.
SHORT TERM TRADER: Short at 11600; stop well above 11800. First target 10800.
POSITION TAKER: Square.
FTSE 100
Overbought with a dragonfly doji at this year’s high has some of the hallmarks of an interim top. If only that chart patterns were bigger and punchier, one could approach more confidently. Note that as well as record high employment the UK currently has a record low number of economically inactive – those neither working nor seeking employment – at 20.7 per cent.
SHORT TERM TRADER: Looking for signs to re-sell.
POSITION TAKER: Square.
S&P 500
Looking rather like the FTSE 100, with a tiny shooting star yesterday at this year’s high, having retraced about 78 per cent of Q4 2018’s slump.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Quite the tussle at current levels as we hold inside a pennant formation and above what had been trend line resistance.
SHORT TERM TRADER: Long at 1.3290; stop well below 1.3200. Target 1.3600.
POSITION TAKER: Square.
EURO/US DOLLAR
Momentum has turned bullish with yesterday’s little notch higher.
SHORT TERM TRADER: Tiny long at 1.1284; stop below 1.1290. Target 1.1460.
POSITION TAKER: Square.
GOLD
Irrelevant at $1300.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 1328; stop above 1320. Target 1255.
