Theresa May asked her greatest political enemy Jeremy Corbyn to help work out a joint plan for Brexit, in an attempt to break the deadlock and prevent the U.K. crashing out of the European Union without a deal.The Prime Minister’s appeal to the opposition Labour Party leader opens the door to the possibility of a much softer form of Brexit, potentially keeping the U.K. inside the EU’s Customs Union. It would be a massive breach of May’s own negotiating red lines, but good news for business. The Pound rose. Corbyn welcomed May’s move and said he would be “very happy” to meet her, and the first response from the EU side was positive. After seven hours of talks with her Cabinet ministers, the premier said the U.K. will need an extra delay beyond next week’s potential cliff-edge deadline of April 12 to resolve the crisis. “This debate, this division, cannot drag on much longer,” May said in a statement to television cameras at her 10 Downing Street office. “It requires national unity to deliver the national interest.” The prime minister’s offer to Corbyn is another sign of the desperation and disarray that has overtaken her government as it struggles to complete Britain’s acrimonious separation from the EU. Parliament has rejected the deal she negotiated with the bloc three times, with Corbyn’s Labour consistently voting against it. She has tried cross-party talks before, but they led nowhere.
To mark my 1800th issue of TraderNoble Daily Commentary I am offering a special 2 year rate of Euro 2750 for my Platinum Service which includes 1 to 4 updated emails throughout the trading day To demonstrate this value, a monthly subscription over the same period would cost 4440 euro in total This offer represents a 38% discount and is open to both new and existing members. If anyone is interested in this offer can you please email me on bryan@tradernoblecom for details
For anyone following my Platinum Service it made 10 points yesterday and is now ahead by 60 points for April, having made 1027 points in March, 1013 points in February, 1671 points in January, 2803 points in December, 1541 points in November and 2094 points in October. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1600 points
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May’s plan has four parts:
- Negotiations with Corbyn to agree a joint plan to ensure the U.K. leaves the EU with a deal. This will focus on the future relationship.
- A May-Corbyn plan would be put to Parliament for approval, and the premier would then take it to the EU leaders’ summit on April 10 to be signed off.
- If May and Corbyn can’t agree, they would put forward “a number of options for the future relationship” between the U.K. and the EU, for the House of Commons to vote on. The Government would promise to deliver whatever Parliament decides.
- Legislation would then follow to allow the U.K. to leave the EU and avoid the need to take part in European Parliament elections next month.
Ms May said her unpopular Withdrawal Agreement, which deals with the terms of the divorce, rather than the future partnership, will need to be passed as part of any arrangement with Corbyn.
Equities
Most U.S. equities finished up from the lows of the day as investors reassessed the strongest first-quarter rally in almost a decade. The Dow was dragged down for the first time in four days by Walgreens Boots Alliance Inc. after lower pharmacy reimbrusements hurt earnings at the drugstore chain. Technology shares pushed the Nasdaq higher. After being lower most of the session, the S&P 500 finished little changed. Car makers pushed the Stoxx Europe 600 Index to the highest close this year. Asia’s benchmark finished broadly unchanged as Japanese shares slipped and stocks in Shanghai and Seoul advanced. The S&P 500 Index was little changed at 2,867.28, while the Nasdaq Composite Index gained 0.3 percent and the Dow Jones Industrial Average dropped 0.3 percent.
Bonds
Treasuries resumed their push higher, closing up two basis points at 2.50%, while in Europe the German Bund closed unchanged at -0.3 bps.
Commodities
Oil traded near a four-month high in New York as a further retreat in OPEC’s production signaled that global markets are tightening. OPEC crude production fell for a fourth month in March as Saudi Arabia forged ahead with cutbacks and as power blackouts in Venezuela further squeezed supplies, a Bloomberg survey showed on Monday. Meanwhile Bitcoin jumped as much as 23 percent to its highest level since late November, according to Bloomberg composite pricing.
This morning on the Economic Front we have German, Euro-Zone and UK Markit Services/Composite PMI at 8.55 am, 9.00 am and 9.30 am respectively. This is followed at 10.00 am by Euro-Zone Retail Sales and at 12.00 pm by US MBA Mortgage Applications. At 1.15 pm we have the ADP Employment Change and this number will be closely watched for any clues ahead of Friday’s Payrolls. Finally at 2.45 pm we have US Markit PMI and the ISM Non-Manufacturing PMI at 3.00 pm.
June S&P 500
After a dull session yesterday the S&P Futures Market is opening 0.40% higher this morning after reports in the FT that the US and China are moving closer to a final trade agreement. I am still flat the S&P and today I will now raise my sell level to 2890/2902 with a 2908 tight stop. I will also raise my buy level higher to 2850/2860 with a 2842 stop.
EUR/USD
It took most of yesterday’s session but finally the Euro traded higher to my 1.1215 T/P level on my latest 1.1205 long position and I am now flat. The Daily Sentiment Index is close to single digits again and is another reason why I continue to be a buyer of the Euro on dips against the key 1.1150/1.1190 support area. Today I will be a buyer on any drop to this area with a 1.1115 tight stop.
June Dollar Index
The Dollar made a high of 97.10 yesterday which was just short of my 97.20 sell level before having a small sell-off overnight and I am still flat. Today I will leave my 97.20/97.60 sell range unchanged with the same 97.95 stop. Given how overbought the Dollar is trading I still do not want to be short the market at this time.
June DAX
There is no stopping the charge in the DAX with the market opening 0.8% higher this morning. With Bund Yields in negative territory there is no where else for money to go but as you know this is a dangerous game given the awful economic data how of Germany over the past two Quarters. However a market that does not fall on bad news has to be respected and is why I have now been short the DAX over the past two months. The DAX is now trading well over the key 11800 pivot point at 11860 and today I will now raise my buy level to 11690/11760 with a 11635 stop. Even though the DAX is trading at the top of its Daily Bollinger Band and Williams Index I still do not want to be short the market at this time.
June FTSE
Hopefully some of you may have bought Cable yesterday with the market now trading 120 points higher than where I marked prices 24 hours ago. So far this move higher in Cable has not impacted on the FTSE which closed at new highs for the year last night. This morning the FTSE is trading at the top of its Daily Bollinger Band and Williams Index on top of being severely overbought and due a correction. With Sterling undervalued in my opinion I will now look to sell the FTSE on any further rally to 7348/7388 with a 7425 tight stop.
Dow Rolling Contract
The Dow underperformed the other main US Indices yesterday following the weaker results from Walgreens. The market sold off but unfortunately just missed my 26080 buy level before rallying overnight on Trade optimism with China. I am still flat and today I will raise my buy level slightly to 26000/26140 with a 25930 higher stop. I still do not want to be short the Dow at this time especially as I have a near-term target of 26750 ahead of a huge move higher to 28300/29000 over the coming months.
June NASDAQ
Thankfully we had no sell level in the NASDAQ with the market now trading close to long-term resistance at 7600. Today I will be a small seller on any further rally to 7590/7640 with a 7675 stop.
June BUND
I was unlucky with a lot of my calls none more so than the Bund which missed my 166.20 sell level with a 166.17 high print before selling off to trade at 165.50 this morning which is frustrating. I am reluctant to chase this market lower from here and I will only lower my sell level to 166.05/166.45 with a 166.75 stop.
Gold Rolling Contract
No Change as my only interest in buying Gold is still on a dip lower to 1269/1277 with a higher 1261 stop.
Silver Rolling Contract
I am still long the market at 15.20 from last week with the same 15.25 T/P level. I will now move my second buy level higher to 14.90 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
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