 Hello and welcome to the Monday market update with me David Madden. Today's date is Monday the 13th of August 2018 and the time has just gone 10 40 British summer time Well the the story of the Turkish lira is that the biggest story in the news This this morning. There's a major sell-off in Asian equity markets overnight There's been a fairly sizable sell-off in European equities this morning And it's the same old story of the of the kind of the crisis surrounding the Turkish lira Overnight the Turkish near a drop to a new all-time low versus the US dollar and other major currencies But it has managed to roll back ever so slightly After the Turkish Center Bank announced it actually have an equity an equity injection To actually can ease things along in terms of the financial system So Turkish lira is off the lows of the session But it's still taking a in a battering of the last number of days weeks and months And it's essentially the same old story from from Friday Traders and investors are very concerned that European banks eurozone banks have exposure to To the drugs economy and also to Turkish banks and that could that could lead to a scenario or provide We could potentially see write-downs from eurozone banks or indeed Eurozone banks using excess cash as a buffer to actually prevent kind of shield themselves from potential fallout from the Turkish crisis And of course if eurozone banks are putting cash towards showing up their own balance sheet That means they can't put cash to work elsewhere in the form of lending out loans Mortgages car loans or short-term loans to to customers So that would that that itself would have a bit of a waning of a negative impact on the respective eurozone economies Take a look at the the week ahead The week ahead can be found on our website if you've got a CMC mark CMC markets calm And then on the news and analysis section you can find the week ahead article Today is going to be a fairly quiet day in terms of economic indicators and corporate updates But tomorrow is a is quite busy and then it gets a bit quieter towards the back end of the week So tomorrow on Tuesday out of China. We have retail sales and industry production also tomorrow morning We have German and your eurozone second quarter GDP On Tuesday and Wednesday from the UK. We have the CPI figures and then also the wages and unemployment data On Wednesday, we first have figures from Balfour BD On Thursday second quarter figures from Davida Also in Thursday second quarter figures from Walmart owner of Azteh and our Friday We have Europe eurozone CPI numbers coming out So take a look now a couple of major markets and see how things have been fairing Over over the trading session So the footsie 100 as it's obvious been it's been dragged lower as you can see here a couple of a couple of sell-off yesterday Or a certain yesterday a menace a Friday sell from Friday and a sell-off on Today's session, but in the ground scheme of things the footsie 100 is holding up relatively well The some of the calculated markets are in far worse shape than the footsie 100 As you saw here the votes 100 at a record high in May And we've been in a bit of a kind of a downward trend or a sideways range since then It wasn't too long ago that the footsie 100 was that I was at a multi-week high But given what's going on with the Turkish crisis We can see that the the market's drifting lower again to be fair And for the footsie 100 holds above this area here in around the kind of 7,500 or via this this area This this kind of price point here of seven thousand four hundred and eighty two Why would we remain north of that it is likely that we could see that the footsie arm hold on to its gains And stay in a fairly good shape if you do about to break below that level seven thousand five hundred or seven thousand four hundred eighty seven We could be looking at it back down toward this area here at seven thousand four hundred and twenty two And if you go south of there, we could be looking at that back down towards seven thousand three hundred But if we do about it to hold above This area here they kind of say seven thousand five hundred area We could be looking at it back up towards the recent highs of says just shy of seven thousand eight hundred in around They kind of seven thousand seven hundred and ninety or ninety four reaching and if you go beyond that We could be looking at it back up towards the seven thousand nine hundred area like I say in the Markets are in far worse shape than the footsie 100 as you can see here With a fairly sizable sell-off on Friday on the DAX and then also we're heading lower again So we're back to kind of level is not seen since late June on the DAX Notice how the DAX Spend a very little amount of time about this red line here the turn to moving average So even though even when did I she managed to retake the turn to moving average Which is kind of seen as a a fairly good problem But if I their markets there in good form or a weak form it didn't spend much time Above it, which is a fairly negative sign the market fell back below. That's been selling off aggressively in the wake of the In the wake of the truckage crisis. So the DAX is heading lower We can see a fairly steady increase in negative momentum So the momentum is with the seller is with the is with the bears if you continue to drive lower from here We could give it a good look at heading back down towards 12,250 and if you go south of that we could be looking down to the the late June low of in around 12,123 and if you go south of that the big cycle as you important 12,000 number they come into play if you did manage to bounce back from here Physicians could come into play in around this area here This particular line comes into play in around the kind of 12,600 area and if you go north of that Next to the keep my forward will be this red line here the turn the moving average which comes into play at 12,750 to and if you go beyond that we could really get to target in the July high and the late July high of 12,800 and 87 Turning attention out what's going on over in the United States the S&P 500 Has been dragged lower because kind of global sentiment as a whole is fairly sour But in the in the in the compared to Europe electric markets the S&P 500 is holding up fairly well So it wasn't that long ago that the S&P 500 only at the beginning of last week Was was that a multi multi-month highs at the highest level since February such as early February early January So we're talking about six a month highs on the on the on the S&P 500 So it gives you pretty good indication of how decent the markets been doing We can clearly see here from from early April has been a classic example of an upward trend higher highs and higher lows granted we managed to have them To drift a bit lower in the last few sessions We've seen a bit of an increase in negative momentum So a move to the downside is being confirmed by the increase in negative momentum So momentum is with the service for the time being but the grand scheme of things the market has been in fairly good shape over the past few months So even if you do not have to drift lower from here support might be found in around the 2800 area the psychological number and if you go below that we could be looking support coming to play at this area here 2791 notice how it acts as both resistance and also support a few occasions in recent weeks and months So it didn't fit so that area could actually be very significant again in the near term And it's only if you head south of that who looks back you see further losses if the market Hanks above holds above 7,000 2800 we could see the market heading back up towards the recent highs of 2864 ish, and then if you go beyond that we get me looking at retesting the old-time I Back in which was achieved back in January 2877 I'll take a look at the NASA 200 as well because it's the NASA 200 it's just been 12 of the last few months have been one of the kind of better We're looking at a deferment and stronger equity indices as managed to kind of weather the storm of the kind of geopolitical crisis is We've been going through and it has been dry lower by the by the prospects and not again But the prospect of a trade war with China, and it's also the trucker situation has as we don't wait on a bit But it's held up really well and that could be that could be the indicator of where we could see traders look for tech stocks Given that they have a recent track record of doing relatively. Well Comparing some others where there's sort of a geopolitical crisis taking place So once again, the NASA 100 has been really good shape essentially since kind of mid-march Kind of classic example of upper trend higher highs and higher lows It is worth pointing out though that the highway chief last week didn't actually take off the all-time high But I got quite close to it. I obviously had a couple of sell-offs Couple of down days in the last few sessions and see even if we do drift lower And the other massive 100 support might come into play at this blue line here at the 50 moving average Which are coming to play at 2762 notice how the journey moving average active support on a few occasions only in the last few weeks So it's been significant the past. It could be significant again in the future The market does like to continue. It's wider upward trend. We could be testing the 7,500 area. I think going beyond that Would obviously be kind of printing fresh new all-time highs and if the market is more all-time all-time highs that you print The market it will be indication of how bullish the market is and the more likely you are to continue continue on pressing other All-time highs because as I mentioned the market has been in a fairly solid upward trend since the middle of March Take a look now in the gold market the gold markets are taking a bit of a dent on the back of the rally in the US dollar The sell-off in the euro the euros has been sold off because of because of uncertainties that that's your zone could be exposed to Turkey And then adding to that this is generally can a fear of that's from the global markets of prompt traders to buy What they did to be safe haven assets such as the Japanese yen and the US dollar and there's been a fairly strong inverse relationship between Gold and the US dollar in recent months So the stronger the stronger the dollar is the week of gold is and vice versa as you can see today Gold matters to the edge of it lower again And I should take out the low of July last year It's we traded we traded out none as low as nearly 12 or two So now back to a level not seen in gold since March last year. It's a given indication That's actually how weak the gold market has been that being said they kind of additional Move to the downside we're seeing in gold aren't that high which tells me that we could see a bit of support coming to play In around the 1200 or 1195 area The moves to the downside have been very good small and incremental So the market you see it appears to be still in the downward trend that it's been in since April But it's just not taken taking off those kind of massive major that moves at a time. So We may kind of struggle we may see some fresh buyers come to the fold in around the 1200 or 1195 area But it's clearly in the downward trend. And if you do continue to do move south of 1195 We could be looking any back down towards 1180 and it can move to the upside in gold like to monitor resistance In round the kind of 11 11 to 15 or 11 20 region As I mentioned a talk about we saw a very decent rally in the in the US dollar in the in the last couple of us couple of sessions Take a look now at the euro sterling. So we had major sell-off in the in the euro only last only last week What we can see here in the euro is that it's managed to actually this area at 115 10 1 1 15 selecting a very decent area with support in recent months But it managed to complicate a smash through that So we're not going to heading back down to levels that season July last year So kind of over one year lows on the euro dollars are giving an indication about various sentiment is on the euro at the moment If you do continue to drift lower from here, we could be looking any back down towards the 112 50 area notice I would act that broad area region acted as a resistance And back in June last year So we may find some support coming coming at the one spot 12 50 area on the euro versus the US dollar Any way to the upside may encounter resistance in a list this area here The old support could become a new resistance So we could see resistance coming to play at again a one spot 15 or one spot 15 10 area on the euro versus the US dollar Last mark of look at now a pound versus US dollar Sturdy's been losing ground versus the US dollar since since April steady classic example of a downward trend The markets been steadily moving lower in recent session the markets been pushing lower There's been a steady increase in negative momentum So the push load in the in the pound versus US dollar has been confirmed by the steady increase in negative momentum So the momentum is with the sellers If you do continue to drive lower from here We could be looking any back down towards one spot 25 90 a level not not seen since Since mid to late June last year any moves to the upside in the in the pound versus the US dollar may run into resistance in around in around the 120 128 area or perhaps even up a high as that one spot 28 20 one spot 29 spot for apologies one spot 29 57 If you do see a bounce back in the pound versus the US dollar sport Listen make them into play in at once part 29 57. Well, that's all for me this week. Thank you very much