Andrew Bailey, head of the Financial Conduct Authority, now says ‘’lessons’’ from the Woodford episode could mean that new rules may be introduced for open-ended funds investing in illiquid assets, like property, reports the Financial Times. He also told platform providers to exercise their ‘’responsibility thoroughly and in a timely fashion’’. Now he says so.
As London Tech Week gets going today, BBC Radio 4 reports that Britain creates more unicorn firms than France, Germany and Sweden put together, making it the world’s third largest (after the US and China) in absolute terms and the biggest per capita – double that of Israel. The UK’s unicorns have a combined value today of $148 billion.
DAX 30
Interesting that the weekly MACD is barely bullish despite last week’s large bullish engulfing candle starting at Fibonacci 38 per cent retracement support. Note that Fitch ratings has downgraded Deutsche Bank after the bank found ‘serious failings’ in payments screening that had lasted for years. Adding to the lender’s woes was Friday’s news that Garth Richie, the investment banking boss, and other employees are to be investigated by Cologne prosecutors over illicit tax transactions.
SHORT TERM TRADER: Short at 11870; stop above 12200. Target 11325.
POSITION TAKER: Stopped out of a short position for a smallish loss.
FTSE 100
Plenty of divergence between the weekly oscillators after last week’s strong rally.
SHORT TERM TRADER: Stopped out on Friday’s strong close.
POSITION TAKER: Stopped out for a small loss.
S&P 500
Extraordinary little bullish momentum despite last week’s very strong rally.
SHORT TERM TRADER: Stopped myself out with a tiny profit.
POSITION TAKER: Stopped out for a loss.
BRITISH POUND/US DOLLAR
Nominations for the Tory leadership, and therefore to be Prime Minister also, open officially today and we currently have 11 hopefuls. Cable has little to go for and decreasing interest as we’ve held pretty much in a 6-cent range for a year.
SHORT TERM TRADER: Small long at 1.2675; stop below 1.2600. Target 1.2925.
POSITION TAKER: Square.
EURO/US DOLLAR
Managing a weekly close just above long term trend line resistance but momentum has yet to turn bullish.
SHORT TERM TRADER: Might go long.
POSITION TAKER: Square.
GOLD
Almost overbought on Friday’s close as we test strong long term chart resistance.
SHORT TERM TRADER: Short at 1333; stop above 1360. Target 1285.
POSITION TAKER: New short at 1340; stop above 1360. Target 1270.
