27th June 2019
US markets edged higher yesterday afternoon after Treasury Secretary Steven Mnuchin boosted hopes of a breakthrough in trade talks with China at this week’s crucial G20 summit. Mr Mnuchin said he is “hopeful that we can move forward with a plan”, telling CNBC that a trade deal with China was “about 90pc of the way there”.
While European stocks struggled in flat territory, while the S&P 500 inched up in early trade as attention turns to the trade war showdown between Donald Trump and Xi Jinping at the G20 summit.
Mark Carney
Mark Carney has blasted investment funds with a liquidity mismatch as “built on a lie”, warning that they could pose a “systemic” risk following the suspension of Neil Woodford’s flagship fund. Mr Carney told the Treasury Committee that the rise of such funds could create “a potential systemic issue” and has led to investors seeing them as “not that different from having money in a bank”. “These funds are built on a lie which is that you can have daily liquidity for assets that fundamentally aren’t liquid,” he said.
Trump
Donald Trump took to the airwaves to reiterate his warnings to China, suggesting he’d impose “substantial additional tariffs” if there’s no progress on a trade deal after his planned meeting with Chinese counterpart Xi Jinping at the G-20 Summit in Japan. “My Plan B with China is to take in billions and billions of dollars a month and we’ll do less and less business with them,” the U.S. president said on Fox Business. Trump accused China of devaluing its currency “like a ping-pong ball,” and called Vietnam an “abuser” when responding to a question about companies relocating production there from China following U.S.-imposed tariffs.
Asian Stocks Edge Higher
Oil jumped 2.7% as U.S. government data showed the biggest crude stockpile drop since 2016, adding momentum to a market already rallying on the standoff between Washington and Tehran. U.S. stocks edged downwards, Treasuries fell and the dollar was broadly lower against its G-10 counterparts. Gold dropped for the first session in seven. Bitcoin surged as much as 22%, topping $13,000 for the first time since January 2018, before plunging in late trading. Asian equities headed for a mixed start but have risen during the session.
Iran Scorns Talks With U.S.
Iran rejected talks with the Washington after the latest round of U.S. levies. Foreign Minister Mohammad Javad Zarif said plans to sanction him demonstrate that the White House’s claims of wanting negotiations with the Islamic Republic are a lie. Iran is set to breach the 2015 nuclear deal that the U.S. walked away from for the first time on Thursday, which could strain European ties.
FTSE 100 Trading Signals, Forecast and Prediction
For today we may well see another flat one on the FTSE. Yesterday had a tiny 30 point range all session and the bulls failed to break above the 7430 level once again. That keeps the 7461 resistance level in play still, and today we also have R2 and the fib at 7455. Ergo a rise to this area looks like a decent shorting level.
Initial support today is at the daily pivot and 200ema on the 30min chart at 7410.I have put the order just below this as we may see a test of the round number 7400 level. Below this then 7381 is showing as support and a possible bounce area, though 7365 is also still in play but the failure to reach that level so far on the dips probably means the higher supports are likely to hold.
That said, if the bears did break low then the 25ema daily support is at 7359 and looks to be a decent long at that level. Also fits with the recent range of 7350 to 7450.
The Australian market had a fairly upbeat session, despite an initial dip and it’s a pattern that I think we will see as well, with a push to those higher resistance levels. If the bulls were to break 7461 then I am looking at 7491 and 7529 above that though I am not sure we will see the latter today!
In Brexit news, UK Remain rebels are reportedly planning to mount a new bid next week to block a no-deal Brexit.
In todays news we are looking at German CPI (Prelim), EZ Economic Sentiment, US GDP (Final), Initial Jobless Claims, Banxico rate decision, ECB’s Nowotny, supply from Italy and earnings from Nike, Accenture, Walgreens, H&M.
Recommended Broker
IC Markets – offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!
Membership
If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.
What you get
- Daily Analysis pre market open (sent around 7am each day) for FTSE, DAX, Gold and S&P.
- Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
- Telegram live trading room and webinar group membership for discussion and realtime trade updates