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- Varchev Finance: Trading day in one post 26.10.2017
Varchev Finance: Trading day in one post 26.10.2017
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Loading...Asian Stock Market: Japan's Nikkei traded higher and finished the session with 0.11% in green territory . Benchmark finished his 16-week positive series yesterday after closing with a 0.45% drop. Kospi has a 0.05% decrease. Australian ASX declined by 0.1% after the financial sector reported a decline of 0.3%. The Chinese indices traded with mixed moods. Shanghai composite has a 0.46% increase, Shenzhen composite by 0.398%. Hang Seng, however, declined by 0.03%.
Currency market: GBP had a great session on 25.10. The island's currency rose against all its competitors after better GDP data. Investors took this as a step closer to raising the interest rate in the country, which is currently at record low levels. We remain positive to GBP. CAD has dropped significantly over the last few sessions. The series of worse data than expected was strongly negative for the Canadian dollar. Market analysts believe that an increase in the interest rate by the end of 2017 may not be forthcoming. Another negative factor is the falling oil price, which is in strong correlation with CAD. EUR reported a slight increase on the day before the ECB's interest rate decision. Today, we will also be watching the ECB press conference to find out what Mario Draghi's plans for QE are. If the President of the Central Bank again remains unclear about when and how much the quantitative easing will be reduced, the EUR is likely to drop significantly. We remain cautious towards EUR.
Commodities markets: OIL reported a slight decrease during the Asian session. Yesterday we saw the US oil inventories that were above expectations. This affected negatively the price of black gold. Brent is currently priced at about $ 58.17 a barrel, and WTI $ 52.09 a barrel. GOLD renewed its rise as it is currently at the key level of 1280.00. If the price of the precious metal passes over this zone, it is likely that we will see a subsequent ascending impulse. Today we will also understand the fate of the referendum in Catalonia. We expect serious volatility of hedging instruments such as GOLD.
European stock market: European stock indices will open with minor changes since yesterday's closing. DAX will open around 12970, CAC around 5380.00 and UKX around 7460. The fate of European benchmarks will be decided at the ECB press conference where we expect Mario Draghi to declare the QE reduction date.
US Stock Market: Yesterday US indices registered one of their few weak days. DJIA fell 112 points and closed at 23,329, S&P dropped 0.47% and Nasdaq wiped out 0.5% of its value. The reason for the decline in indices was worse than expected companies fiscal reports. Today we are expecting a new dose of fiscal reports. Amazon, UPS, Twitter Microsoft and many other companies will publish their financial results for the third quarter. If they disappoint the market, we will probably see a deepening index correction.
Economic calendar for the European and American trade sessions 26.10.2017
9:00 Germany - Gfk german consumer climate
10:45 Australia - Assist GoV Debelle speaks
11:00 EU - Private sector loans
14:45 EU - Interest rate decision
15:30 USA - Initial jobless claims
15:30 USA - Trade balance
15:30 EU - ECB Pressconference
17:00 USA - Pending home sales
17:30 USA - FOMC member Kashkari speaks
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