Over the weekend, Chinese President Xi Jinping, on a state visit to Nepal, warned: ‘’anyone attempting to split China will end in crushed bodies and shattered bones. And any external forces backing such attempts dividing China will be deemed by the Chinese people as pipe-dreaming’’. This follows a rather limited trade truce signed with the US on Friday. Data this morning show imports into the Chinese mainland falling 6.2 per cent as measured in yuan in September, while exports fell 0.7 per cent, so that the trade surplus increased from $34.8 billion to $39.6 billion.
CNBC reports that, based on data collated by FactSet and Bank of America Merrill Lynch, that US investors poured $322 billion into money market funds over the last 6 months; this is the fastest pace for inflows since the second half of 2008. Total money assets are currently at their highest level since September 2009 and yield on average 2 per cent, down from 2.47 per cent at the start of this year.
DAX 30
Reversing the previous week’s losses with a bullish engulfing candle despite negligible momentum. Data from Germany this morning show that wholesale prices fell 1.9 per cent annualised in the year to September, the steepest fall in many months,
SHORT TERM TRADER: Stopped out of short position for a small profit.
POSITION TAKER: Stopped out of short position for a small loss.
FTSE 100
Last week added nothing to the technical picture for the FTSE 100 but kept the MACD bearish. Meanwhile EUR/GBP slumped from £0.9000 to £0.8700, one of its biggest weekly moves this year.
SHORT TERM TRADER: Small short at 7140; stop above 7275. Target 7025.
POSITION TAKER: Square.
S&P 500
Rallying by more than we had allowed for on hopes for a proper trade deal. A Columbus Day holiday in the US and Thanksgiving in Canada mean no North American trading today.
SHORT TERM TRADER: Stopped out for a tiny loss.
POSITION TAKER: Stopped out at a loss here too.
BRITISH POUND/US DOLLAR
The best week for cable this year has only just turned momentum bullish; it also underlines just how one-way too many were thinking. Now as the EU gets ever more creative with the jargon for negotiations that have been trundling on for over 3 years, no doubt in classic Brussels style we’ll end up with late night talks over a hastily convened midnight supper.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Last week’s tiny rally has barely eased bearish momentum. Now we ‘ll see what the EY have to say to Britain on Thursday.
SHORT TERM TRADER: Small long at 1.0970; stop below 1.0880. Target 1.1100.
POSITION TAKER: Square.
GOLD
Settling slightly unsteadily on support last week as the MACD threatens to turn bearish.
SHORT TERM TRADER: Short at 1520; stop above 1535. Target 1440.
POSITION TAKER: Short at 1507; stop above 1560. Target 1440.
