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- Varchev Finance: Trading day in one post 22.11.2017
Varchev Finance: Trading day in one post 22.11.2017
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Loading...Asian Borse Market: Asian indexes traded with increase on Wednesday. Japanese Nikkei rose 0.84%, Topix by 0.56%. The Australian ASX is also green on 0.37% considering a weakening Australian dollar. The energy sector and the material sector contributed most to the index. Korean Kospi also joined the group of rising indices and added 0.23% to its value. China's markets are also booming. Shanghai composite was 0.45% up, Shenzhen composite by 0.22%, and Hang Seng went over the round mark of 30,000 and rose 1.01%.
Forex market: USD: has weakened in the last few days. The pair of EUR/USD breaks its downward channel in an upward direction, ending the short-term correction, making mid-term long more likely. For now, the interest rate increase in December is over 90% and is already priced in by the market. The market appreciates the possibility of an increase in interest rates in March to 55%, but before Janet Yellen is replaced by the new FED president in early February, we can not say for sure what will happen to the FED plan and the pace of increasing the interest rates. AUD: Australian dollar continues to weaken due to concerns, interest rate in the country will be raised in the 4th quarter of 2018. Another factor is that the Australian economy is closely linked to China, and China is expected to be oversupplied with raw materials, which would hurt Australia's exports. For the moment, we remain negative to AUD. JPY: The yen is in broad consolidation against its main competitors. There is currently no indication of any BoJ activity on monetary policy or interest rates. We expect the JPY to remain in consolidation for the time being looking for long positions to test support levels.TRY: Turkish lira continues to depreciate. Although the central bank raised the interest rate to record high levels, inflation in the country persistently remained at high levels: 11.9%. Market analysts' expectations are TRY's depreciation to reach $4.05 against the dollar by the end of the year.
Commodity market: Aluminum: we expect the metal to continue its downward movement. Although he was one of the best performers in 2017, the satiated and biggest consumer of aluminum, China, will drag the price down. We remain negative to Aluminum in the short term. GOLD: failed to continue its upward movement. Investors now seem to pay little attention to threats from North Korea, and any upward movement of the hedging instruments is quickly returned afterwards. The price of gold is closely linked to the interest rate and inflation in the United States. If the forecasts of some analysts come true and the FED raised the interest rate three times in 2018, the gold price will most likely register a significant downturn.
European stock market: We expect European benchmarks to open without a significant change since yesterday's closing. The German DAX will open around 13180, the French CAC around 5370 and the UKX 7410. At the beginning of today's trade, we expect market participants to close some of their positions after yesterday's rally, which will lead to a correction. But quickly, investor positivism will most likely prevail, and European indexes will be on the upside again.
American Stock Market: US indices close at record levels. DJIA climbed 160 points (0.69%) to 23,590.83, S&P rose 0.65% to 2599.03 and Nasdaq 6562.48. The reason for the rally of US benchmarks is the significant increase in the technology sector. Apple is 1.9% green. Facebook, Amazon, Netflix, and Alphabet also registered increase. Today, during the European session, we may see a fall in US futures and profits taking, but a little later in the day, we expect the FOMC report that can give new impulse to purchases. We remain positive about the US indices.
Economic calendar for the European and American trade sessions 22.11.2017
14:00 USA - Mortgage market index
14:30 UK - Autumn budget
15:30 USA - Core durable goods orders
15:30 USA - Initial jobless claims
17:00 USA - Michigan consumer sentiment
17:00 EU - Consumer confidence
17:30 USA - Crude oil stock
20:00 USA - Baker Hughes crude oil rig count
21:00 USA - FOMC Meeting minutes
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