Just a month since the last 25 basis point trim from 1.5 per cent, where it had been stuck for 3 years, they’re at it again attempting to boost the economy and steady the housing market, reports the Financial Times. Governor Philip Lowe also hinted that there might be further cuts as ‘’the uncertainty generated by trade and technology disputes is affecting investment and means that risks to the economy are tilted to the downside’’. He also commented on inflation, where ‘’pressures remain subdued’’ but should rise to 2 per cent or more after 2020. Tool box almost empty.
Newly elected MEPs start work in Strasbourg today, including 73 from Britain (the same as Italy, France 74 and Germany 96). With Europe’s biggest left and right-leaning parties both losing a lot of ground, though remaining the largest block, anti-establishment groups including Greens, Liberals and far-right MPs will have a bigger say. Over in Brussels the EU leaders’ meeting got no further with selecting people for the Commission’s top jobs. A visibly frustrated President Macron said: ‘’Our credibility is profoundly tainted with these meetings that are too long and lead to nothing, we give an image of Europe that isn’t serious’’.
DAX 30
Almost overbought with a gap and shooting star doji yesterday, things look unstable at current levels. Worth noting that Bloomberg reports that as well as Deutsche Bank, HSBC and Nomura are planning drastic cuts to personnel this summer.
SHORT TERM TRADER: New little short at 12530; stop well above 12625. Target 11800.
POSITION TAKER: Square.
FTSE 100
Holding up quite well though overbought, with a gap yesterday which ended in a shooting star style doji; highly unstable.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Almost overbought at a new record high with a gap and a doji; oh dear! Interesting to hear that yesterday Warren Buffet announced he was giving away $3.6 billion of his Berkshire Hathaway shares to 5 charitable foundations. This takes his gifts since 2006 to $34 billion.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
There’s just no momentum.
SHORT TERM TRADER: Long at 1.2740; stop below 1.2630. Target 1.2900.
POSITION TAKER: Square.
EURO/US DOLLAR
Not a good day for the euro though momentum is still bullish. It’s now given up almost half of June’s rally.
SHORT TERM TRADER: Stopped out of my long position for a tiny loss.
POSITION TAKER: Square.
GOLD
Maintaining Monday’s gap lower and now the daily MACD has turned down.
SHORT TERM TRADER: Small short at 1407; stop above 1425. Target 1335.
POSITION TAKER: Short at 1404; stop above 1440. Target 1320.
