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- Варчев Финанс: Trading day in one post – 02.07.2018
Варчев Финанс: Trading day in one post - 02.07.2018
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Loading...Asian stock market: Major Asian markets declined on Monday, the first trading day of the second half of the year, as heavy losses were recorded in China ahead of a looming deadline when tariffs from both Washington and Beijing are expected to take effect. In Tokyo, the Nikkei 225 declined 0.95 percent, touching a session low despite continued weakness in the yen. Over in Seoul, losses on the Kospi steepened day, with the index last trading lower by 1.5 percent. Elsewhere, the Shanghai composite fell 1.13 percent, while the smaller Shenzhen composite shed 0.5 percent. Down Under, the S&P/ASX 200 erased early gains and hovered around the flat line, last lower by 0.03 percent as consumer stocks and gold producers traded lower in the afternoon.
FX market: German media Bild reports that Foreign Minister and leader of the Christian Social Union, Merkel's coalition partner in the government, Horst Seehofer, has rejected the migration deal that Angela Merkel negotiated at the summit in Brussels last week. He commented that the meeting he had with Merkel Saturday night was futile and pointless. This is negatively perceived by traders, with EUR/USD nearly 30 pips lower than its opening levels. The crisis in Germany will drive the euro in the day because of the lack of significant economic news in the region.
Commodities market: In recent days, oil has continued to accumulate new sanctions against Iran, with investors completely ignoring OPEC+ intentions to increase volume by up to 1m. barrels per day. At first glance, sanctions with Iran appear to be a very solid foundation for oil, but Iran's real oil will remain on the market, and the price should fall. Where is the problem then, and why do we observe this steady growth? It seems that the problem is rooted not in OPEC+ or Iran, but in Canada, Kazakhstan and Libya, countries that have a small share of the oil market. Only two weeks ago the three countries in question were not included in the list of countries of which they could be of concern. Over the last 14 days, however, the yields of Libya, Canada and Kazakhstan have dropped drastically, fully covering OPEC+ efforts to increase yields.
European stock market: Donald Trump's threat that he will impose tariffs on EU car imports may trigger Brussels' response. Trump's commercial policy has already caused tensions in steel and aluminum. On Sunday, Trump compared European countries with China in terms of trade with the United States. Twitter Trump has announced that European car manufacturers will be subject to criminal sanctions if barriers to US exports are not abolished. This is the reason for the first written statement of the European Commission. The document states that this move on the part of the United States, the imposition of car tariffs will not be accepted by the international community and will "further damage the reputation" of the United States. The document also states that a possible trade war between the EU and the United States will lead to broken political relations, to trade, growth and jobs in the United States. EU leaders warned last week that the EU would respond to all US tariffs on European production. The counter-actions on both sides do not serve the indices, with the main European benchmarks opening in negative territory. Commercial rhetoric will drive markets today.
U.S. stock market: Donald Trump warned European companies that they would receive additional sanctions if they violated US restrictions on the conduct of business practices with Tehran after Washington stepped out of the Iranian nuclear deal. The refusal to release European companies will further lead to tensions between the US and the Eurozone allies. Transatlantic relations have seriously worsened during Trump's presidency, mainly due to problems related to commercial practices, security and defense spending. Trump has also angered some US allies last month when he called on the G-7 to accept Russia back as a member. This tension between the US and its key trading allies + China weighs on local companies as a core part of their business practices is directly related to them. Analyzes indicate that, in the absence of positive progress on this topic, hundreds of thousands of jobs may be lost, which will be extremely negative for the largest economy in the world. Futures of the main US indices are in red territory, and there are currently not many factors that can change that.
Economic calendar for the European and U.S. trading sessions:
10:55 Germany - German Manufacturing PMI
11:00 Europe - Manufacturing PM
11:30 UK - Manufacturing PMI
12:00 Europe - Unemployment Rate
17:00 USA - ISM Manufacturing PMI
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