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- Varchev Finance: Trading day in one post 04.10.2017
Varchev Finance: Trading day in one post 04.10.2017
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Loading...Asian Stock Market: Asian markets were trading mixed. In Japan, the Nikkei 225 is up 0.21% to 20656. In Hong Kong, the Hang Seng Index is with an of 0.76% increase to 28386. At the beginning of the trade, the stocks in Australia fell sharply along with the country index ASX 200 The index is down by 0.72% to 5660. The markets in South Korea and China were closed due to national holidays.
Currency Market: The dollar rally is slowing as investors expect Donald Trump's decision for the new FED chair and the tax reform. The dollar index fell from the current highs as news emerged that Trump has been presented with a shortlist of Fed-chair candidates with a range of views on policy. One of them is Kevin Warsh, who criticized the central bank for monetary policy. This has negatively affected the USD and currently the currency is trading at levels around 112.60. By the end of the week, we expect a lot of statements from FOMC members. Today we are expecting James Bullard's speech at 22:00 and Janet Yellen's at 22:15. The decline in the dollar had a positive effect on the Asian-Pacific currencies. AUD and NZD climbed against the USD, and the AUD / USD price is around 0.7859. At the beginning of the session in Asia, the aussie climbed to its highest levels since 27 September. Analysts believe that if the RBA continues with a cautious policy and the dollar continues to rise, the pair may drop to 0.76. On the other hand, NZD broke its range as the sale of the dollar helped the pair's price to reach the current levels around 0.7180.
Commodity Market: After reaching seven-week low, gold rose slightly at night. The fall in precious metal is due to the upward expectations for a rise in US interest rates and a strong dollar. Gold is trading at $1275. Oil continued its decline as API data showed that inventories by most since January. The price has struggled to keep above $ 52 a barrel after last month's rally. OPEC needs a new agreement to cut production before March to support the price of black gold. Today we expect the Crude oil inventories data from the USA at 17:30, as the data can affect the price of the commodity in shor-term. Currently, oil is traded at levels around $50.
European Stock Market: The moods before the opening of European markets are positive. Shares in the region will follow the rise in US markets, and European indices are expected to open with an increase. DAX is expected to open 36 points higher, the French CAC with a 7-point increase and UKX with a 6-point drop.
U.S. Stock Market: Shares in the US closed with an increase. DJIA rose 0.37% to $ 22,642 to a new high after the Goldman Sachs stocks helped the most for the fifth consecutive day of record. The S & P500 gained 0.22% to $ 2534, with most of the gains coming from the telecommunications sector. The Nasdaq also rose 0.23% to $ 6531, and this is the 6th consecutive day with a rise of the index." Some investors were worried about the current levels of the market, but Warren Buffett said it was normal considering the level of interest rates. He said this was a strong factor for stock prices. Currently, investors are expecting a third rise in interest rates this year in December, which may also support stocks. On the other hand, the VIX stayed below 10 despite the Las Vegas incident and the indices continued to rise, indicating that there are no fears in the markets, and we can expect further increases.
Economic calendar for the European and U.S. trading sessions:
10:50 - France - Services PMI
10:55 - Germany -Services PMI
11:00 - Europe - Services PMI
11:30 - United Kingdom - Services PMI
12:00 - Europe - Retail Sales
15:15 - United States - ADP employment change
16:45 - USA - Services PMI
17:00 - USA - ISM Non-Manufacturing Employment
17:00 - USA - ISM Non-Manufacturing PMI
17:30 - USA - Crude Oil Inventories
20:15 - Speech by Mario Draghi from the ECB
22:00 - Speech by James Bullard from FOMC
22:15 - Speech by Janet Yellen of FOMC
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