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- Varchev Finance: Trading day in one post 03.10.2017
Varchev Finance: Trading day in one post 03.10.2017
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Loading...Asian Stock Market: Asia markets were mixed in morning trade on Tuesday, despite U.S. equities closing at record highs overnight. Japan's Nikkei 225 climbed 0.78 percent to 20,560.05 and the Topix index rose 0.46 percent to 1,681.48. Hong Kong's Hang Seng index resumed trading on Tuesday, after being shut on Monday. The HSI rose 1.71 percent to 28,026.25 in mid-morning trade. In Australia, the ASX 200 dipped 0.35 percent to 5,709.10 in late-morning trade. The Australian dollar traded at $0.7827, which was a level similar to last Friday. A decade of political infighting is threatening Australia’s prospects. Just when the economy needs growth drivers outside of mining -- which fuel the riches of stakeholders but do little for the vast majority of Australians living in major cities -- the country has fallen to the middle of the pack, trailing the U.S., euro zone and Canada, all countries it led just five years ago. Australia is still ahead of the U.K., Italy and Japan, and on par with France.
Currency Market: The dollar index, which measures the greenback against a basket of currencies, traded at 93.853, rising from levels below 92.500 in the prior week. Dollar dominance was not a one-sided story. Events unfolding in Catalonia, emerging risks from the euro zone, Brexit woes and snap election uncertainties in Japan could have contributed to the dollar strength against major currencies. The dollar rally is likely due to a "short dollar positioning squeeze instead of a real turn." Among other currency majors, the Japanese yen traded at 113.10 per dollar, weakening from an earlier high of 112.63. The euro traded at $1.1708, falling from a previous session high of $1.1740. RBA decided to keep the interest rates in Australia unchanged at 1.50%. This additionally weakened AUD against the already strong USD.
Commodity Market: Oil prices fell Tuesday morning Asia time. U.S. crude was down 0.32 percent at $50.42 a barrel, while global benchmark Brent fell 0.43 percent to $55.88. The unwind in long crude positioning continued overnight. Separate surveys pointing to a "higher than expected OPEC production in September was enough to see the rot set in. Extended speculative long positioning in both contracts was the real culprit behind the drop in oil prices in the previous session. Gold was little changed at $1,269.90 an ounce, after falling 0.7% on Monday. The resilience of rough gems hasn’t flowed through to diamond stocks. Hit by mine setbacks, political fights and lower prices for certain types of stones, producers including Firestone Diamonds Plc and Mountain Province Diamonds Inc. have taken a beating over the past 12 months. Meanwhile, the broader FTSE 350 Mining Index has shined with a 28 percent return over the same period.
European Stock Market: Despite the deadly shootout in Las Vegas, the positive mood will spread around Europe, where the major indices are set to follow their U.S. peers. CAC will open 5 points higher at 5,359, DAX will gain 22 points to 12,931, and UKX will incline with 9 points at the opening of the trading session. Germany had already made a choice at the beginning of last week, with Angela Merkel's party again leading in the Bundestag. This news, however, failed to lift the euro as Merkel's result would force her to seek a coalition with another party, something we may not see until the end of 2017. This put some pressure on the euro as the indexes grew.
U.S. Stock Market: U.S. equities rose to all-time highs and the dollar strengthened as factory data and the prospect for tax cuts boosted optimism in the economy. The S&P 500 Index closed at another record to start the fourth quarter and the dollar headed for the strongest level since July after data showed U.S. manufacturing expanded at the fastest pace in 13 year. Investors are also watching developments in Las Vegas, where more than 50 people have died in the deadliest shooting in modern U.S. history. Global shares began the final quarter of the year on firm footing amid signs manufacturing is strengthening. China reported an unexpectedly strong factory gauge and Bank of Japan’s quarterly Tankan survey showed the country’s big manufacturers are the most confident in a decade. While U.S. factories got a lift from two major hurricanes, the U.K. reported slowing growth. Dow Jones Industrial Average rose 153 points to 22,558.42 - another record close. Nasdaq 100 was steady as tech shares struggled.
Economic calendar for the European and U.S. trading sessions:
11:30 UK - Construction PMI
12:00 Europe - PPI
15:30 USA - FOMC Member Powell Speaks
15:55 USA - Redbook
16:45 USA - ISM - NY Business Confidence
18:30 USA - All Truck Sales
23:00 USA - All Car Sales
23:35 USA - API Weekly Crude Oil Stock
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