FTSE: A sustained break below 7200 looks increasingly likely this week..Chart & Levels from Analyst, Nicole Elliott – Investors Chronicle

FTSE SHORT TERM TRADER: Took profits just ahead of the original target at 7200.

FTSE POSITION TAKER: Short at an average above 7300; stop above 7535. Target 6925.

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At its annual meeting starting in Bali today, the International Monetary Fund’s chief economist Maurice Obstfeld trimmed their global growth estimate to 3.7 per cent from 3.9 per cent. This tinkering has been caused by ‘over optimistic’ forecasts in April’s bi-annual report, by Q2 growth being slower than predicted, and because of escalating trade tensions. Estimates for global trade were slashed: originally expected to increase by 4.8 per cent this year and 4.0 in 2019, they are now forecasting 4.2 per cent and 4.6 per cent respectively. Note that there are only 3 months until the end of this calendar year.

Keeping a wary eye on sovereign bond yields, some of which are dropping in value and yielding the most in several years. Not across the board, mind you, as China has taken a series of steps to loosen the purse-strings to help its economy and monetary policy rates in the Eurozone, Japan and the UK are not expected to budge.