Trading day in one post 01.08.2017

Asian markets overview: Stocks rose in Asia after earnings reports, Chinese manufacturing data, and South Korean imports strengthened confidence in global economic growth. Indices in Tokyo and Sydney were up with raw materials makers adding to their recent profits. Japan's Nikkei 225 rose by 0.27%. South Korean Kospi gained 1.11%, boosted by rebounding production. Major market moves included Samsung's rise of 4.46%, and Lotte Chemical's profit of 3.12%. In Australia, the S&P/ASX 200 added 0.6%, boosted by the energy sub-index, which was up by 1.38%. Hong Kong's Hang Seng advanced 0.61%. Shanghai Composite rose by 0.29% due to production PMI data, but remained below its peak, while the Shenzhen Composite lost 0.138%.

Currency market: The dollar index remained almost unchanged after declining by 0.3% on Monday to end its series of 5 consecutive months of loss. The euro fell 0.1% to $ 1.1827 after rising 0.8% on Monday. The yen declined by less than 0.1% to 110.30 against the dollar after rising 1.9% in July. Economic data for Caixin Manufacturing PMI in China were positive, surpassing expectations - 51.4 against 50.4 expected, which reflected well on AUD and NZD, which advanced against the still weak dollar. There is a correlation between the movement of AUD/USD and the iron ore, Australia's largest export. There was a divergence after Trump's victory in the US, but at the end of the month, the currency pair began to lead the price of the ore again. RBA left interest rates unchanged at their last meeting. The bank's opinion is that the source of the uncertainty of the domestic economy is consumption. They expect a gradual increase in inflation. The recent rise of AUD increases the prospect of employment. Economic growth is expected to reach 3%. Expectations for the Australian economy remain broadly unchanged.

Commodities Markets: Oil has increased its profits through the Asian session. Brent crude climbed 0.27% and traded at $52.86 a barrel, while West Texas Intermediate gained 0.3%, and traded over $50 to around $50.33 a barrel. The raw material reached a two-month high because of speculation that the US would impose sanctions on Venezuela's oil sector. Copper recorded its biggest monthly earnings since January, as demand stayed in China, and declining iron ore prices prevented supply. The metal climbed 0.7 percent to $6.369 per metric ton on Monday, the highest level for more than 2 years. Gold rose by less than 0.1% to $1,270.25 per ounce.

European markets: European markets will begin the new month in positive territory, following the positive outcome of the Asian session. The German DAX is expected to open at around 12,128, the French CAC around 5097 and the UKX at 7410. Economic sentiment in the euro area remains strongly positive against the backdrop of corporate reports. We are likely to see a correction in the stocks market because in Germany the court ruled that the ban on cars at certain places and at a certain time is legal and does not violate the law. Some diesel cars are likely to be banned, which will not affect manufacturers well. Today we expect financial reports from Infineon Technologies, Rolce Royce Ltd., AstraZeneca and BP.

American markets: Dow Jones Industrial Average closed at record highs on Monday as Wall Street enjoyed the excellent corporate season. The index rose by 60.81 points and closed at 21,891.12, with Goldman Sachs and Home Depot contributing the most to the profits. Boeing also boosted the rise in the index after the share price rose by half a percentage point. This happened after the company announced that expects a record-breaking orders by Indian for airplanes. These news came about a week after the company posted better-than-expected quarterly results. The S&P 500 closed down by 0.7 percent to 2,470.30 as companies in the materials and information technology sectors dropped. The Nasdaq composite also closed at a loss, down by 0.42% to 6.348.12 as Facebook and Alphabet technology giants stepped in.

Economic calendar for European and US markets sessions:
09:00 GBP - Nationwide HPI
09:30 AUD - Commodity Prices
10:55 EUR - German Manufacturing PMI
11:00 EUR - Manufacturing PMI
11:30 GBP - Manufacturing PMI
12:00 EUR - GBP
15:30 USD - Personal Spending
15:55 USD - Redbook
16:30 CAD - RBC Manufacturing PMI
16:45 USD - Manufacturing PMI
17:00 USD - ISM Manufacturing PMI
17:30 USD - Dallas Fed Services Revenues
18:30 USD - 4-Week Bill Auction
22:30 USD - All Truck Sales
23:00 USD - All Car Sales

Read more:

• And for all the bounty hunters: Iran offers $80m for the head of Donald Trump
• US service member and 2 US Defense Dept contractors killed in Kenya attack
• Iranian Quds leader Qasem Soleimani has been killed – how are markets reacting
• A calm end of an otherwise loud 2019
• Old but Gold – Top 5 posts of Varchev Finance