Good morning and welcome to episode 737 of ‘Talking Bull’. In this video/podcast we cover the main headlines and what to expect from the day ahead.
We take a technical look at key markets that are likely to be impacted by today’s events. Also, we participate in a ‘Gun to the head’ challenge where each of us calls a live trade. These will expire at 9pm tonight and we will keep track of the progress over time.
We hope you enjoy it!
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Joe was down 0.26R on NZDCHF. Steve was stopped on Bitcoin.
We have included an illustration based on a £1000 account. This will follow the combined return of our morning trades by risking 1% of the trading capital per trade. The 1% risk is a variable monetary amount and will rise and fall based on the success of the calls.
We are currently up 209.64% collectively since we began recording Talking Bull on the 30th October 2019.
Chinese monetary policy eased slightly….
After Friday’s European open, the Chinese central bank announced a 25 basis-point reduction in the bank reserve ratio requirement in an attempt to underpin liquidity. The move helped underpin global risk appetite, although the overall response was limited.
…. but political protests intensify
There has, however, been a notable increase in political protests within China amid a series of protests in Shanghai and Bejing against Coronavirus policies, mass testing and lockdowns.
Very unusually, there was also criticism of the leadership and evidence of calls for President Xi to step down.
There will be concerns over the threat of a crackdown by the authorities.
Global risk appetite dips
Risk appetite deteriorated on Monday amid concerns over protests in China. Equity markets moved lower, although moves were limited at this stage.
Oil prices under pressure
Oil prices dipped sharply on Friday and China concerns were a significant element in triggering further losses on Monday with benchmark crude prices sliding to 2022 lows
Lower oil prices will help ease market concerns over global inflation developments.
Key events for the week ahead
Fed Char Powell is due to speak on Wednesday which will be important for policy expectations and the latest US employment report is due on Friday.
17.00: New York Fed President Williams comments
Key events over the next week
December 1st: US ISM manufacturing index
December 2nd: US employment report
December 2nd: Canada employment report
Gun to head challenge – Update
Today’s trade idea
Have a great week everyone.