British retailers quizzed by the Confederation of British Industry in June had 58 per cent saying sales volumes dropped as compared to this time last year; 16 per cent claimed sales had increased, thus giving a reading of -42. Far lower than any estimate, lower than May’s -27, and the lowest reading by far bar December 2008’s -55. Non-store retailers, such as internet and catalogue, saw an increase in sales volume this June. Over at UK supermarkets, the trend continues, with Asda, Morrisons and Sainsbury’ losing a little market share, Tesco and Waitrose’s proportion flat to June 16th, Coop up 3 per cent, and the German discounters showing sales growth of 7.5 and 9.3 per cent.
Today China’s agriculture ministry has admitted that the fall armyworm has been found in 19 of its 34 provinces. A caterpillar native to the Americas, the Financial Times says it was first spotted on the Chinese mainland in 2016. Especially fond of munching through corn, leading to a potential 50 per cent drop in crop yields, it is another blow to the food industry which is already battling with African swine fever.
DAX 30
Bullish momentum levels remain where they were at the beginning of this month. Worth noting that data this morning show German GfK consumer sentiment (9.8) at its lowest since March 2017.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Negligible bullish momentum and a dragonfly doji yesterday denote a market looking for direction.
SHORT TERM TRADER: Small short at 7385; stop above 7470. Target 7100.
POSITION TAKER: Square.
S&P 500
Retracing a Fibonacci 23 per cent of this month’s gains has eased the overbought situation.
SHORT TERM TRADER: Short at 2885; stop above 2960. Target 2800.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Zero momentum and failure at the top of a potential broadening base chart pattern is disappointing, but not fatal.
SHORT TERM TRADER: Long at 1.2740; stop below 1.2630. Target 1.2900.
POSITION TAKER: Square.
EURO/US DOLLAR
Stopping suddenly as Fed chairman Powell warns against Fed policy bending to ‘short-term political interests’, reports CNBC.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
A shooting star candle yesterday as spot gold soars to its highest level in years, followed by this morning’s downdraft has the makings of a 3-candle evening star combination; this would mark an interim high. Note that it’s still overbought. The accompanying media hype is also a contrarian warning signal.
SHORT TERM TRADER: New small short at 1407; stop above 1440. Target 1335.
POSITION TAKER: Square.
