After the initial euphoria over the positive news stories at the weekend, markets have stalled somewhat as the long-standing fears over a slowdown in global economic growth resurface. Added to the need to see real concrete developments in the trade dispute, indices are not running away with themselves.
The Hang Seng is trading 325 points higher as we head to the closing bell as demonstrations in Hong Kong are largely under control. The Nikkei225 is currently 25 points higher.
Dollar strength put sterling, the euro and GOLD under pressure yesterday with the euro heading back below 1.1300. GOLD is the only one of the three to enjoy a slight bounce this morning
The paired trade of GOLD and the DOW has served us well over the last seven days and again looks the best opportunity this morning. Ideally we are looking for a slight bounce in either from current levels before shorting both.