Trading Plan – Monday 12th September 2022: Investors flee European stock funds

Mark NugentSept 2022, Trading Plan

Trading Plan – Monday 12th September 2022: Investors flee European stock funds

Good morning.

Last week, the European Central Bank completed its volte face by adding a further 75 basis-point hike to July’s 50 basis-point hike. ECB President Lagarde said she had got it wrong. Oh, and there’s more tightening to come.

In the UK, the government, led by new PM Truss, threw a boatload of cash at the energy price problem, which went down quite well.

I made a late foray into WTI long on Thursday night. I got out with a gain of 1.2 percent, which was pleasing.

There are reports over the weekend of Germany considering direct intervention in the energy market to avoid company insolvencies. In addition, investor sentiment in Europe is souring, as evidenced by the withdrawal of $3.4 billion from European stock funds in the last week and $83 billion in the last six months, according to Deutsche Bank. Blackrock’s Chief Investment Strategist chipped in with “We’ve expected a recession in Europe for months given the energy crunch, but we don’t think equities have fully priced this in.”

This week has no real focal point on the economic calendar. We do have inflation data from the US, Germany, and the UK.

As always, I go through my trading themes in the video.

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