City AM this morning reports that based on data from PwC, commissioned by the City of London Corporation, the City gave the UK government 10.5 per cent of all its tax take in 2019, while employing just 3 per cent of the working age population. Higher than average salaries meant these people paid 11.6 per cent of all employment taxes. Over the calendar year £33.4 billion was paid directly by financial services firms, £42.1 billion by employees and via VAT. However, corporation tax receipts fell by 9.5 per cent, lower than it was in 2008, because of lower profitability.
Yesterday German auto-industry lobby the VDA published car production data for 2019 where 4.66 million vehicles were made, off 9 per cent from last year and its lowest since 1996. Domestic demand actually rose by 5 per cent to 3.6 million cars, the highest since 2009, while export demand slumped. Meanwhile this morning UK-based BMW-owned 116-year old Rolls-Royce saw sales surge 25 per cent last year to 5152 cars, demonstrating the allure of true luxury versus aspirational, entry-level luxe.
DAX 30
Despite yesterday’s sudden slide and dragonfly doji, bearish momentum didn’t increase and set off this morning’s bounce.
SHORT TERM TRADER: Short at 13090; stop above 13475. First target 12885.
POSITION TAKER: Square.
FTSE 100
Unconvincing price action has kept the MACD bearish. Here too we had a dragonfly doji candle yesterday – possibly with some features of a hanging man.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Not quite so overbought this week after Friday’s hanging man candle. US foreign policy towards Iran and Iraq is muddled indeed, creating a martyr out of senior commander Qasem Soleimani, a Pentagon muddle as to whether US troops would be pulled from Iraq, and now denying Iran foreign secretary Mohammad Javad Zarif a US visa to attend a United Nations meeting in New York this Thursday.
SHORT TERM TRADER: Small short at 3223; stop above 3265. Target 3100.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Bouncing from what should now be trend line support, as we’d hoped, keeping momentum bullish.
SHORT TERM TRADER: Small long at 1.3075; stop below 1.2900. Target 1.3500.
POSITION TAKER: Square.
EURO/US DOLLAR
A difficult and messy chart with a shrinking MACD.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Still overbought despite almost filling the gap created this week. Certainly has garnered plenty of press coverage on the rally over $1540, but not convinced it’s sustainable.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
