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- Trading day in one post 06.03.2017
Trading day in one post 06.03.2017
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Loading...Asian shares were warily mixed on Monday, as geopolitical risks in Asia heighten after North Korea fired multiple ballistic missiles.
North Korea fired multiple missiles off its east coast, which flew about 1,000 km (620 miles), South Korea's military said, while Japan said three missiles landed inside its exclusive economic zone and that it would not tolerate the hermit state's provocative actions.
Japan's Nikkei 225 fell 0.46 percent, while the Kospi recovered from earlier losses to trade up 0.14 percent.
Australia's ASX 200 was up 0.24 percent, after January retail sales increased by 0.4 percent from the previous month which were inline with expectations from a Reuters poll.
Chinese stocks were resiliently higher, with Shanghai composite up 0.37 percent and Shenzhen composite added 0.85 percent. Hong Kong's Hang Seng index was up 0.37 percent.
During Asian trade, Brent crude futures slipped 0.38 percent to $55.69 a barrel and U.S. crude fell 0.41 percent to $53.10. This comes after a surge of more than 1 percent for both crude futures last Friday on the softer dollar.
The Dow Jones industrial average rose just 0.01 percent to 21,005.71, the S&P 500 index lifted 0.05 percent to 2,383.12 while the Nasdaq composite finished up 0.16 percent to 5,870.75.
The dollar index, which tracks the greenback against a basket of major currencies, was trading at 101.44 after falling from the 102 handle last week on Yellen's rate rise comments.
Economic calendar for European and American trading sessions
11:10 EU - Retail PMI
11:30 EU - Sentix Investor Confidence
17:00 USA - Factory orders
22:00 USA - FOMC Member Kashkari speaks
USD - The current week is extremely important for the dollar. In her last statement FED' president Janet Yellen said that only if the next jobs report is beyond awful, there will be a reason to postpone the next rate hike. Right now the analysts pricing the change for a rate hike during March over 90 %.
GBP - 30th of March, that's the date when Theresa May should invoke Article 50. The upcoming month will be highly volatile for the pound, the sentiment is negative for the currency, but we cannot exclude sharp spikes. We remain negative toward GBP and will look for a good place for a short position in GBP/USD, because the USD should be the strongest currency in the market and the GBP must be the weakest.
JPY - Yen might become stronger during March. Despite Japan fiscal policy, which is highly negative for the currency, JPY is considered as a hedging instrument during political and economic uncertainty, and as it looks like we are heading that way.
Indexes - It looks like the Trump's rally took a day off. DJIA dropped more than 250 point, but that may be tiny correction of what is coming. If the president of USA keep his plant , this might be just the beginning of the rally of the indexes. We remain long and look for a signals for positions.
Gold - During the last weak GOLD lost ground. Mainly because of the increasing odds of FED to increase rates in their next meeting. The valued metal is measured in dollars, strong USD equals weak GOLD. Also the increasing inflation in USA is negative for the valuable metal.
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