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Market Outlook: World Bank to lend China $1 billion a year

Washington’s fuming
December 6, 2019

The 5-year lending plan discussed and approved yesterday, was not supported by the US representative on the World Bank’s board following Treasury Secretary Mnuchin’s objection. The money has been earmarked for structural and environmental reforms and amounts may fluctuate.

City AM this morning reports that HSBC will be altering the way it charges for bank overdrafts following new legislation introduced by the FCA; the Nationwide Building Society has already done something similar. Starting in March 2020 all HSBC customers will be charged 39.9 per cent on overdrafts while removing the £5 daily fee on unarranged ones and introducing a £25 buffer before charges are triggered. Head of lending Madhu Kejriwal said ‘’by simplifying our overdraft charging structure we are making them easier to understand, more transparent and giving customers tools to help them make better financial decision’’. Subsequently First Direct followed in their footsteps, funnily enough also charging 39.9 per cent.

DAX 30

No follow-though from Monday’s sell-off because there’s no momentum.

 

SHORT TERM TRADER: Short at 13200; stop above 13375 with a target at 12335.

 

POSITION TAKER:  Square.

FTSE 100

Bearish momentum increasing by the tiniest of steps, probably because as we’re at the lowed edge of the central range since August.

 

SHORT TERM TRADER:   Square.

 

POSITION TAKER:  Short at 7300; stop above 7325. Target 7100.

S&P 500

November jobs data due this afternoon might sway the market as prices dither between the upper edges of the two very large potential broadening top formations.

 

 

SHORT TERM TRADER: Small short at 3112; stop above 3160. Target 2975.

 

POSITION TAKER:   Will sell depending on how the weekly candle looks.

BRITISH POUND/US DOLLAR

 

Momentum on the weekly chart is steadier and more bullish than the daily one would have you believe, hovering over the 600 mark since the beginning of November. Yesterday we got our daily close above the secular trend line; now watch for a weekly one. This will probably lead to another round of short-covering. Will then consider adding to both my long positions

 

SHORT TERM TRADER:  Small long at 1.2950; stop below 1.2875. Target 1.3350.

 

POSITION TAKER:  Long at 1.2950; stop below 1.2865. Target 1.3350.

EURO/US DOLLAR

French unions will strike again today after tear gas was used against protestors in one of the biggest stoppages the country has seen in years. President Macron’s approval ratings fell again, with 61 per cent or so disapproving of the man.

 

SHORT TERM TRADER:  Short at 1.1050; stop well above 1.1100. Target 1.0930.

 

POSITION TAKER:  Square.

GOLD

A second consecutive doji yesterday as prices dither at the 1480 area.  

                            

SHORT TERM TRADER:  Short at 1520; stop above 1500. Target 1440.

 

POSITION TAKER:  Short at 1507; stop above 1520. Target 1440.

Nicole Elliott is a long-standing member and Fellow of the Society of Technical Analysts and has taken over the IC’s trading coverage.  She is regularly interviewed and quoted by the financial media, is a conference speaker, and author of several books on charting.