The Financial Times reports that on Friday Valdis Dombrovskis of the European Commission announced that Europe’s access to UK clearing houses would be extended for another year once the March 2020 deadline is reached. He admitted that the EU financial services industry wouldn’t have any alternative arrangements up and running by then. Rather a blow as the swaps clearing business is worth €640 trillion. Catherine McGuiness, policy chair of the City of London Corporation, points out in City AM today that data from the UK’s ONS Britain exported £82 billion of financial services last year giving the nation the biggest surplus in the world. She also spoke to the Commissioner on cooperation tackling climate change and the transition to a low carbon economy.
Schools in Hong Kong will remain closed again today after police fired rubber bullets, water cannon and tear gas at protesters barricaded into the Polytechnic University today. There have been suggestions that police had aimed at kettling them in the campus grounds.
DAX 30
In a week where the market went nowhere, forming the tiniest of doji candlesticks, it is almost overbought.
SHORT TERM TRADER: Small short at 13200; stop above 13325. Target 12300.
POSITION TAKER: Square.
FTSE 100
With the market going nowhere since August it’s not surprising that the weekly MACD is no longer bearish.
SHORT TERM TRADER: Short at 7370; stop above 7435. Target 7175.
POSITION TAKER: Square.
S&P 500
Unsurprisingly overbought once again as we inch to a new record high closing at the upper edge of the potential broadening top.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Looking as though we’re breaking above the top of the pennant formation this morning.
SHORT TERM TRADER: New little long this morning at 1.2950; stop below 1.2765. Target 1.3350.
POSITION TAKER: Long at 1.2950; stop below 1.2750. Target 1.3350.
EURO/US DOLLAR
Scraping itself off last week’s lows despite zero momentum.
SHORT TERM TRADER: Short at 1.1050; stop above 1.1100. Target 1.0930.
POSITION TAKER: Square.
GOLD
Holding Fibonacci retracement support but momentum is steadily bearish this month.
SHORT TERM TRADER: Short at 1520; stop above 1500. Target 1440.
POSITION TAKER: Short at 1507; stop above 1520. Target 1440.
