China’s Debt Bomb – We agree to dis-agree.
It’s been called a mountain, a horror movie, a treadmill to hell and a bomb. To doomsayers, China’s $34 trillion pile of public and private debt is an explosive threat to the global economy. Or maybe it’s just a manageable byproduct of the boom that created the world’s second-biggest economy. Either way, the buildup has been breathtaking, with borrowing quadrupling in seven years by one estimate. (China doesn’t give a complete tally). President Xi Jinping has taken note, pushing authorities to announce a slew of measures that target risks lurking in the financial system. The challenge is how to wean the country off its debt drip without intensifying an economic slowdown. Since China is a key driver of global growth, it’s a matter of concern for everybody. Read More @ https://www.bloombergquint.com/global-economics/2018/09/17/chinas-debt-bomb#gs.C7Y=blU
S&P 500, Dow snap win streaks as U.S.-China trade war escalates
U.S. stocks close lower Monday, with the S&P 500 and the Dow snapping multiday win streaks, as President Donald Trump prepares to announce additional tariffs on Chinese imports while China hinted at a new round of retaliation. See full story.
This is the biggest lesson investors should learn from the 2008 financial crisis
The “dumb” plodders who held on have had the last laugh over the “gurus.” See full story.
Wealthy Americans may be warning of the stock market collapse to come: analyst
Our call of the day pays a visit to a familiar theme for investors these days as we are in the thick of the anniversary of the global financial crisis — what are the warning signs of another financial crisis? Read More @ https://www.marketwatch.com/story/sp-500-dow-snap-win-streaks-as-us-china-trade-war-escalates-2018-09-17?siteid=rss&rss=1
WHAT IS THE USD INDEX SAYING?
USD has formed a bearish reversal candle – this time we believe the USD will snap; we are still staring at $93 for now. Once again a gentle reminder that the market is still fragile and it can go anywhere. Always put in place good money management and you be fine.
TUESDAY NEWS THAT MIGHT AFECT YOUR TECHNICAL TRADES.
- 9.30am – RBA will release their Monetary policies Minutes and is expected to be in favor for AUD.
- 3.15pm – ECB Mario Draghi will speak and EUR pairs are expected volatility – we believe in favor for EURO.
- 8.30pm – Canada will release their MFG SALES – expected to be good – It’s a leading indicator of economic health – manufacturers are quickly affected by market conditions, and changes in their sales can be an early signal of future activity such as spending, hiring, and investment.
- 8.30pm – US will release their NAHB Housing market Index – Survey of about 900 home builders which asks respondents to rate the relative level of current and future single-family home sales – expected to be weak data.
High Risk Investment Warning:
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