 Hello and welcome to the Monday market update with me Dave Madden today's date is Monday the 18th of June 2018 And the time has just gone 1125 British summer time Quick rundown of what's been going on today. We're seeing European equity markets are lower a number of factors are going on here Trade tensions are running high between the United States and China on Friday We saw the United States Announced a new raft of tariffs against China China retaliated over the weekend This is all pressure on global equity markets over a few years at the trade war is stepping up We're not seeing any side back down at the moment. We're not any closer to an agreement The traders are a bit worried about this So we are seeing stocks in Europe and the red the German market The DAX is also under pressure given a bit of political uncertainty over in Germany Angela Merkel is the head of the CDU the Christian Democratic Union and their sister party in Bavaria the CSU the Christian Social Union of Bavaria are at logarithms at the moment In relation to immigration policy and there's some people even saying that this could be this good This this this issue could even actually put major pressure on Angela Merkel herself So we're seeing a little bit of a sell-off in the tax on top of that Let me look at the major economic and corporate events of the week Looking at the week ahead article, which can be found on the news and analysis section of our website Tomorrow we have the first quarter figures from Ashted Tomorrow on Wednesday. We've housing data coming out of the United States. It's about the mixture of Homebuilding starts existing home sales and building permits coming out tomorrow and Wednesday a Wednesday We did the Barclay group the British homebuilder have their full year figures out on Thursday We have two updates from central banks. We have the Swiss National Bank the SNB And we have the Bank of England the BOE Both policies are typically remain unchanged, but let's not for the Any kind of clues or the voting breakdown or any kind of clues Bank of England may give away in the statement of press Conference in relation to what future monetary policy could be on Thursday the OPEC meeting begins and A few days ago that was there was talk OPEC We're going to increase the output on a daily basis by 1 million barrels per day as of this morning There's no talk that they're increased they're looking to increase the production by only between 300,000 and 600,000 barrels per day So it would appear that the chatter is now that production increase is still on But it's not gonna be as sizable as traders and issues expected So the OPEC meeting begins on Thursday and finishes on Friday and our Friday We have the Eurozone flash manufacturing and CPI manufacturing And service numbers coming on that this gives indication of how well the Eurozone economy is doing a bearing in mind last week You heard from the the European Central Bank That the bond buying scheme the policy is will wind down in 2018 the stimulus package That is but we're not going to have a rate rise from the bank from the European Central Bank Until at least the back end of 2019 if we have one in 2019 at all So take a look now at a few of the major markets starting off with the FT100 So the FT100 of Seattle decent run from March to May for those two months And we've pulled back ever so slightly since then and the last couple of sessions We have seen a bit of a downward pressure But the upward trend that's been in place for you know about three months I'll still very much play if you hold above this level here, which comes in play at 75 91 It's likely you could see the market retesting 7,800 or up to 7,900 even if you drift lower Sport make them into play at this area here. Is this the sport area at a 70 7,482 And even below that sport make them into play at this red line here between the moving average which comes in play at 7441 Take a look now what's going on on the German market sure market is it has also been a fairly solid offer trend since March We obviously average a size will retreat here and the high of June didn't quite get as high as the high of May So every so slightly just Just finished shy of that But we are still above this red line here the turn the moving average which comes to play at 12776 if you hold north of that line of the red line It's likely that the positive move will continue it should continue to press on higher from here We could be looking at targeting 13,200 and beyond that we could be like 10 towards 13,400 this area here notice we saw better consolidation In both December and January In the 13,400 region and if you go beyond that we've been looking up towards 13,600 It's only if you break this level here the late may low of 12th of Which comes into play at about 12,554 This area here could actually could be could that would be a bit concerned with market could be hit back down towards 12,400 or possibly even as low as 12,300 take a look at what's going on in the in the In the Dow Jones This year is the US 30 cash the Dow Jones so after seeing a the beginning of an upper trend a collection of higher highs and Higher lows on the Dow. We didn't see them asking the market like other global markets pullback in recent sessions We're still We're not too far away from the three month high So we're still in the in the upper trend if you do continue to drift lower in the near term We could find support at this year in line here the one-day moving average which comes to play at 24,724 And then if you even you move south of that we could support could come into play at this red line here The 20 moving average which comes to play at 24,270 79 moves to the upside We could be looking at re-testing this this area here north in around the 25,340 market around here if you go beyond that the late the early March high of 25,507 I think I'll be on that Terriers if you look in towards the mid of mid February high of twenty five thousand eight hundred and twenty one As I mentioned this talk this talk that the we could see a a Smaller than expected increase It's more than in output from OPEC. There was talk of a production increase of one million bars per day There's no talk that that's going to be between any increased will be will be between three thousand and six hundred thousand So we have seen the price of oil bounce back today, so Taking a look here at print at WTI We can see it that we have a size of decent enough move pulled back here If we can hold north of this level here today's low at sixty three spot fifty eight We could be looking at re-testing this yellow line here The one to move the average which comes to play at sixty five spot forty one No, so I feel a few occasions and actually that as a support Well, the mark was edging higher. So may actually resistance as they're pushing higher from here beyond that We could be looking at it towards six seven dollars a barrel and then beyond that we could be looking at it towards sixty eight spot fifty nine If you take out the recent lows here at a sixty six sixty three spot fifty eight We could be looking any back down towards the early eight per low of sixty one spot seventy eight Take a look now. This is a brain crude oil. So similar is looking chart On a brain crude oil obviously at a major down day and Friday But we haven't had managed to actually pull back a bit given the There's talk the output is going to be lower than they should originally expected So we continue to push on higher from here We could be looking at re-testing this blue line here of the fifty moving average Which comes to play at seventy five spot eighty one not on a few occasions did manage to act as a support So it could active resistance in the near term and move beyond that could take us up towards a seventy seven This area here and then beyond that you could be looking at the the late may high of seventy eight spot ninety eight If you didn't continue to take out the recent lows We could be like me heading back below seventy two or perhaps even down towards seventy one dollars a barrel itself Over on the currency markets We take a look at your dollar your dollars been in a fairly obvious downward trend since mid-air But we know she quite an aggressive sell-off. We did have a bounce back here I couldn't really get I couldn't really get a hold hold above eight one spot eighteen eight fifty one Why we remain south of this this area here. It's likely that the downward trend is going to remain a player If you continue to push on the sort lower from here We could be looking at testing the at the may low of a one spot fifteen ten And if you go beyond below that we could be looking at taking us back down towards the one fourteen area So we really would need to take out this high here at one spot eighteen fifty one before it become more confident that the That the downward trend is being negated It's coming to an end if you do much much push out higher from here We could be looking heading back up to up towards the fifth of the moving average which comes into play in all In the in around the one spot nineteen twenty two mark and then beyond that up towards one twenty And then finally taking a look at pound US dollar service duration here We're by some a very obvious downward trend from the put up since it since since April The market after after sitting a bounce back in late may is has been drifting lower yet again If you continue to edge lower from here We could be looking at every testing that may know of one spot thirty two or four and move below that could take Us back down towards one thirty one or even down as low as one spot thirty twenty seven Move to the upside could account a resistance that the the recent may high of one spot thirty four seventy two And then beyond that traders could look back up towards this turn moving average this red line here at one spot thirty six Nineteen well, that's all for me this week. Thank you very much