DAX: It denotes instability and has turned the MACD more clearly bearish. Chart/Levels from Analyst, Nicole Elliott – Investors Chronicle.

 

One thing at a time
Yesterday the Fed, today the Bank of England

Needless to say, the widely anticipated 25 basis point cut to the Fed Funds target rate (now standing at between 2 and 2.25 per cent) wasn’t enough for President Trump; I think many were thinking along his lines when, as a trading room dealer would describe the reaction as: ‘’buy the rumour, sell the fact’’. Fed chairman Powell called the move a ‘’midcycle adjustment’’. Today the MPC meets at Threadneedle Street and they’re bound to keep the Bank Rate at 0.75 per cent; they also publish their Quarterly Inflation Report. Don’t breathe a sigh of relief just yet because tomorrow, Friday 2nd August, the US publishes its July employment statistics.

Continued demonstrations in Hong Kong, several hundred last night clashed with police, about 44 of whom are facing serious charges. Now Bloomberg reports that the White House is monitoring the situation on the border with the mainland. China accuses the US of egging on the protestors – whose initial target was proposed extradition, then called for Hong Kong’s chief executive Carrie Lam to resign, and now they’re focusing on Communist Party interference with the island’s autonomy. The news agency claims that an anonymous US official briefed the media that there was a sudden ‘’congregation’’ of Chinese forces at the border with Hong Kong.

Financial Markets and Political Commentary
 

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