Another military coup in Turkey

FTSE 100 called to open +20pts at 6690, still in recovery mode from Friday’s lows. This keeps alive not only July’s uptrend but also the bullish patterns we’ve been highlighting: 3-week bullish flag + 11-month bullish inverse H&S reversal. A break above 6700 would likely excite the Bulls about fresh 11-month highs. A break below 6650 might put July’s uptrend in jeopardy and serve to fire up the Bears again. Watch levels: Bullish 6705, Bearish 6675.
The positive opening call comes after a failed military coup in Turkey against President Erdogan as stability/control returns to the European-Asian-Middle East crossroads following an eventful weekend in which 6,000 dissident soldiers and lawmakers were arrested. This happening so soon after the tragic events in Nice last week simply adds to plentiful pre-existing geopolitical tension.
Asian stocks largely positive, shrugging off geopolitical concerns thanks to positive house price data from China on the back of solid GDP numbers last week and continued renminbi stability. Japanese stocks helped by a weaker Yen and Australia’s ASX holding up well in spite of a sharp drop iron ore prices and a mixed picture in the commodity space as the US dollar sits around recent highs.
US stocks closed off another  positive week with equity indices hitting record highs once more, although they did come back towards the end of Friday’s session to finish flat for the day. We had somewhat of a choir of Fed speakers in Atlanta Governor Lockhart and Minneapolis's Kashkari who were encouraged by US economic strength with the former still thinking that 2 rate hikes this year can happen. They were joined by St. Louis Governor Bullard, who saw inflation as an ‘upside risk’ to his own forecasts and thus called for one 2016 hike. Note the White House cut its GDP forecasts to +1.9% in 2016  and +2.5% in 2017.
Crude prices have broken out of their July falling highs, both Brent and WTI potentially consolidating ahead of another leg up towards the ceiling of their June falling channels. Note the new Saudi oil minister offering some more words of wisdom to the markets concerning ‘supply and demand.’
Gold spiked higher amid the attempted coup in Turkey, and has subsequently settled back as it became clear the government was able to remain in control of the country. Rising support since 14 June is encouraging to gold bulls nonetheless with equity markets in the US looking toppy and USD basket trading near resistance.
In focus today, with data rather lacking, will be the upshot of the weekend’s attempted military coup in Turkey and what it means for both Middle East and European stability given the country’s strategic geographic location.
Data wise we are limited to US NAHB Housing Index seen flat in Jul while speakers include the Bank of England’s (BoE) Weale, the ECB’s Linde and Villeroy while the meeting of EU foreign ministers is likely to find its agenda up in the air after the weekend’s events.