 Good morning and welcome to the weekly market update with me, David Manning. Today's date is Monday the 20th of January 2020 And the time has gone 1135 GMT and to be honest, it's been a pretty quiet day today Not a whole lot has gone on. We see a slight move to the downside in European stock markets Volatility is fairly low and It's likely to remain low throughout the day As the New York stock markets are closed today as today the US celebrates Martha Luther King Jr. Day so with the closure of the American markets volatility and trading volumes are likely to be thin and fairly uninteresting a fairly low on this side of the Atlantic There's been a few bits and pieces going on There was some unrest in the in Libya and Iraq Over the weekend and with that we saw a nudge higher in the price of all nothing massive especially considering The upside moves we've seen you know in recent weeks and also the caster mine back to September where we saw a major move to the upside so It's a big enough move if you're looking at a regularly on a on a basis of say unrest in the old producing countries But it's been a fairly small in comparison what we've seen in recent weeks and months You know, I mentioned how European stock markets are a little or this morning nothing massive It's not really kind of great kind of fear factor out there, but keep mind On Friday the first 200 hit is his highest level since the late July and and for the taxes It's not too far away. It's a few points away from its record high So keep in mind stock markets are strong in Europe So I'll let them move to the downside on a day when not much trading volume has been going on the fall Utilities low at the rest of the trading session here in Europe things are fortunately are likely to remain a bit of quiet side Things have also been kind of recently quiet on the economic indicator front German PPI Remains in negative territory, but improved So it went from negative seven tenths one percent to negative two tenths one percent So it shows that demand is still a soft, but at least it's improving So that that that should trickle down to the manufacturing sector and turn the seed the headline CPI read itself What I'm gonna do now is to a quick look at the week ahead We take a look at some of the big economic indicators corporate stories in a week ahead of us And then after us what I'll do is I will then look At a handful of the big of the popular markets If you view the big indices view the big currency pairs and a few of the big commodities So the weekend article can be found on a website if you go to see the markets calm And then under insights and then under news and analysis So looking ahead to tomorrow We have first quarter figures from easy jet Also tomorrow we have the fourth quarter numbers from Netflix We have tomorrow also also the world economic forum the event the Davos event Which is a usually a lot of publicity, but not much action So after the place for the the great the good to get together Talk about them about how they're gonna change the world how they're gonna have influence the world often creates a lot of news newspaper articles and Broadcasters talk about a lot, but usually it doesn't really impact the markets whatsoever What's likely to move the markets though tomorrow we have UK unemployment neck between Tomorrow we have UK unemployment and average earnings This is going to be a particular focus seeing as the chatter about the bank of England's cutting interest rates later This month has ramped up keep mine and Friday and at the back end of last week. It's a pretty awful retail figure retail sales figures from the UK We have the bank giving them sorry apologies. I could Japan. I'd like to make it on the mind there It says right here a pocket Japan interested decision on On Tuesday tomorrow look ahead to Wednesday. We have the bank of Canada interest rate decision Also Wednesday, we have third quarter figures on Burberry keep on that because obviously the likes of the unrested in Hong Kong The cooling of the Chinese economy and on top of the fact that we have we had some by and large some fairly poor retail sales stories here in the UK on Thursday we have fourth quarter figures from Intel also on Thursday. We have the European Central Bank Interest rate decision and not ready to be expected from that meeting and on Friday. We have going to be Europe Eurozone manufacturing and services flash PMI reports so that that gives a taster for how the How the service sector and the manufacturing sectors of the major European economies are doing? Like I said, I'll take a look at some of the big big European the big markets and see see See what the price action has been like I said, it's been a pretty quiet day today, though So the function with hundred Like I said at the beginning of the video. Hey, that's highest level Since July and Friday, so the market is clearly in an upward trend We can see here at the upward trend is not very much intact if you continue to hold the ball this metric here in around 7600 it's likely we could see the wider of Australia to do you I Should that be the case? She'd press on higher from here a good looking at targeting the July highs That's in around 7,730 and if you go beyond that We could then be looking at targeting this zone here in around 7,000. Well, just just shy of 7,800 And even if you do have a size of right to the downside and if you do manage to check out this zone here in around 7600 it could take us back down towards 7,500 or potentially the lowest that we saw in early January and that 7,470 Taking a look what's going on over Germany. It's been a pretty quiet day. You know keep mind You saw we saw that we saw the German market at a strong finish on Friday You know the the German Dax is currently in around 13,535 keep in mind The region of say 13,600 there there about will be an all-time high. So we're a few points away From the the taxes all-time high. So the market is still in quite decent shape, although Trading volatility is tipped to be quite today But if you can manage to press on higher from here, we could be looking at retesting the all-time highs in around 13,600 so if you do have a move to the downside, we could find some support from this zone here In around can say in around 13,400 down to 13,360 this kind of zone there in here But even if you drop below that sports still can be found to this blue line here the fifth removing average that comes into play in around 13,200 and 60 there there about So the actual cash trading of the US shares remain close to a but there will be some trading for the index All so the likes of the Dow futures S&P S&P 500 futures, but keep in mind We're probably gonna see low volumes and therefore and also top of that low volatility, but If you take a look at the price action In the last few days, it's a pretty similar story between the Dow and the S&P 500 Wasn't too long ago. We were achieving record highs. That's basically sums up how strong the sentiment is So in the last few weeks and months we can see that buying on the dip has been a popular strategy the traders So should we see a pullback potentially down towards 29,200 or potentially down towards 29,000 itself big psychological number Or perhaps even 28,800 these areas could potentially all act as support should we see a decent enough pullback to the downside Move to the downside on the Dow Jones. And obviously if you look to going to press on higher from here and take out The highs of last week we could then be looking towards 29,500 600 700 so on and so forth I should now take a look. Let's go on the S&P 500. It's a fairly similar situation there We'd record highs last week, which basically tells you everything you need to know about the sentiment But if you do manage to pull back from here support could be found this old here in around 3,300 or potentially if you go below that this old here in around 3,200 and 70 so this so the the upper trend is still very much intact It's only really if you have a size of break below the early July early, sorry early January though this year here in around 3,100 80 it's only really if you have a size of break below that could that would be good to think You know what maybe the upper trend that you see recently In the near term as come to an end But you know essentially while we hold above easy come to be about these areas here It's likely we could see further gains be made So if we do press on higher from here and if you take out the recent highs We could be like me directly in three thousand three hundred and forty fifty so on and so forth Take a look at the currency markets now Which is pretty quiet to be honest and pretty dull on for a zero dollar goes But I'll cover any because I know it's pretty popular clients. So broadly speaking from October onwards Through through late December. It's been in an upward trend. That's a large you remain in that upward trend and While the holds above this blue line It's the other line here the 100 a movie average which comes into play at once by 10 is 65 If you can hold about that, it's likely that we could see the wider upper trend continue I should that be the case we could be like you're targeting the major Andrew high in around a one-spot eleven seventy two And if you go beyond that we could be like you're heading up towards one spot twelve and a movie on that could take us up towards the highs of early August in around once about twelve fifty there they're about Like I was saying volatility and volumes are likely to be low because With the US out of commission the financial markets as the whole is likely to be fairly quiet But if you do see a move to the downside on your dollar I should take out this metric here the 100 a movie average. It could take us back. Don't worry This is all here down around one spot ten And it's only really if you have a size of break below one ten could then we begin to think you know what? Maybe the upper trend we've seen between October and late December of last few months Maybe we should be gonna cut that the question and then maybe we could see the market retest the 109 area Pound dollar is basically basically flat on the day. It's the broad view between September onwards has been in a solid upward trend We give them back a fair bit the ground I was achieved in December on the back of the Decisive win by the conservative party at the UK general election, but if we could hold above this area here The 129 area there they're about if you hold above that area It's likely we could see the wider upward trend continue. I should be pressed on higher from here We could be looking at a good one spot 32 And if you go beyond that we could be heading towards the high of late December in around one spot 32 84 and then if you go beyond that we could then be looking at wrangling the one spot 35 area But if you do have a fairly size of break below 129 that could take us back down towards this red line here Which is the two hundred a moving average and that comes into play at one spot 2689 And I think the move below that we could take us back down towards the one spot 26 area We did see have seen some coordination in the near in the past So it's likely we could see it could be of importance in the future I mentioned at the beginning of this video about how we saw a move to the upside in the oil market given the unrest in all producing country countries such as Iraq and Libya And if you take a look first here at Brent crude and take a look at the trend Since October has been very much in an upward trend Granted I'll admit the moves that we saw in early January on account of what's going on to wrap went on with the run was very unusual and It created putting a huge addition amount of volatility which is energy dropped off So we've despite of the upside we've given up a large of those gains We fell back below the pre Iranian tensions issue But notice how this red line here the two already moving average which comes to play in around 64 spot 42 Broadly speaking and act as fairly decent support. So while we hold above that It's likely the wide rougher trend could continue I should be press on higher from here We could be looking retesting the kind of 69 zone on branch And if you go beyond that with them and if we head in towards the psychology port and 70 bucks a barrel But if we do have a decent break below the 30 movie average I could bring the water to move the average this yellow line here into play Which comes into play just north of sixty sixty three dollars per barrel That is the Brent Marcus. Let's take a look what's going on on WTI. It's a fairly similar picture So if you actually draw a line between the lows of October and also the lows well of early October and mid I mean October on WTI we get the trend line along here We can also see how when the market when the WTI markets sold off it after De-escalation of tensions between the earth between your man of the US We saw similar situation on the market fell back below the pretentious level, but also broadly speaking It managed to largely hold above its 200 a movie average this red line here So if you can hold above that metric, we could see the wider upper trend continue I should that be the case we could look to head back down back toward to the Psychological important 60 bucks per barrel region and if you go beyond that it could be to carry up towards 62 and essentially while we hold above this trend line along here It's likely you could see the wider upper trend continue But if you do see a decent break below this trend line I could be a signal that the kind of upper trend on the last few months has come to an end And I could hit that could send us back down towards the potential to the 54 region Lastly, I should take a look at what's going on with gold So gold also got caught up with the Iranian tensions issue We saw the metal printed a fresh multi-year high for a fresh 60 or high six and a half year high in January on the back of the Iranian tensions But then of course once they get the escalated metal give back a fair bit of those gains But we do appear to have found some sort of base in around 1536 area this region here This this and if you could hold above 1536 we could look to press on higher from here. I should that be the case you could take us back up towards because of 1576 area 75 area this region here And then if you go beyond that we could have had back up towards the psychology important $1,600 announce mark, but keep in mind we have seen Things cool off considerably in recent weeks. So if we do have a very decent break back below 1536 that could take us back down towards 1520 and if you go up below that we could be likely heading back down towards the psychology important $1,500 per ounce mark Thank you for listening. Have a good week trading and please tune in next week. Thank you very much