FTSE: Shooting star candle…hints interim high might be in place. Chart & Levels from Analyst, Nicole Elliott – Investors Chronicle.

 

FTSE SHORT TERM TRADER: Short at 6905; stop above 7040. First target 6600.

FTSE POSITION TAKER: Short at 6770; stop above 6950. Target 6200.

No Chinese inflation In December

Data from Beijing this morning show that there was no increase in consumer prices last month, which saw annualised CPI drop from 2.2 to 1.9 per cent – back to where it stood in the summer. More alarming was the fall in the increase in producer prices, from 2.7 per cent in November to a mere 0.9 per cent acceleration in December – the slowest pace since October 2016. Sovereign bond yields have anticipated this result, having dropped sharply over several months.

Noises from the US Federal Reserve continue to point to an increasingly determined effort to back-pedal. Minutes of their latest meeting, published yesterday, note that volatile stock markets in December, slowing global growth and subdued inflation mean that the board ‘could afford to be patient about further policy firming’.

Financial Markets and Political Commentary
 

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