The focus on UK Brexit and the uncertainty of the EU/UK deal and the fate of PM Theresa May remains the headline story. There are 48 letters needed for a leadership challenge and the count is 20 so far, writes Bob Savage Friday.
And, 48 is also the hours in the weekend and many seem to have that in mind as trading dwindles into the Thanksgiving holiday week ahead.
You can by 48 chicken nuggets in a bucket in Japan, one for each hour of waiting. And 48 is the tag for freight trains cars that hold truck containers.
The point is that there is a trainload of events in the week ahead despite the noise of today to remind investors that risk is a four-letter word.
We could wait for the British pound (GBP) to break 1.27 or 1.32 before trading anything and be happy (at least for the next 48 hours.) Or we could pay attention to what happened elsewhere and consider the opportunities.
While this was the week that was supposed to lock in the Brexit deal and Italian budget fudges and U.S./China pre-talk agreements we have had no such certainty. Markets obsess about the U.S./China trade deals in the making and consider the brake to euphoria from Wilbur Ross late yesterday.
China shares rally while Japan shares stumble again.
We just have to wait for the G20 in Argentina for clarity there. New Zealand dollar (NZD) and Australian dollar (AUD) both rallied for the third week despite the China doubts on growth.
NZD is the star performer and may be the one to focus on into the next week if you are looking for clarity, as this is either a counter uptrend doomed for failure or the start of a massive global recovery led by 3 million people. No one can be sure of the outcomes and so it’s unlikely to see much joy in today’s tape for the U.S. Watching what moves maybe the best way to spend your next 48.
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