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- Trading day in one post 08.05.2017
Trading day in one post 08.05.2017
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Loading...Asian shares traded mostly higher on Monday following the landslide victory of Emmanuel Macron in the French polls on Sunday, with the Nikkei share average hitting its highest level since December 2015.
Asian markets were higher across the board, with Japan's Nikkei 225 surging 1.68 percent. The Nikkei share average also reached its highest level since December 2015.
South Korea's benchmark Kospi index added 0.56 percent. Over in Australia, the ASX 200 was higher by 0.69 percent, driven largely by its energy and materials sub-indexes which were up 1.87 percent and 1.63 percent respectively.
Greater Chinese markets were mixed. The Hang Seng Index gained 0.32 percent but the Shanghai Composite and Shenzhen Composite were lower by 0.51 percent and 0.429 percent respectively.
The dollar traded at 98.783 against a basket of rival currencies, edging slightly higher compared to the 98.5 handle seen in the previous session.
On the energy front, oil prices rose on the back of renewed output cut hopes, with U.S. crude gaining 1.41 percent to trade at $46.87 a barrel. Brent crude added 1.49 percent to trade at $49.83.
Stateside, equities closed higher on Friday, with the S&P 500 and Nasdaq closing at record levels following the release of strong April jobs data.
Economic calendar for European and American trading sessions 08.05.2017
09:00 - Germany - Factory orders
10:30 - UK - Halifax House Price Index
11:30 - Eurozone - Sentix Investor Confidence
15:15 - Canada - Housing Starts (Apr)
15:35 - USA - FOMC Member Bullard Speaks
15:45 - USA - FOMC Member Mester Speaks
17:00 - USA - Fed Labor Market Conditions Index
USD - The dollar returned a few of it's losses after the market opened. In the last couple months US currency weakened mainly because of Trump's incapability to hold his promises. Still, in middle-term and long-term period the sentiment for USD remains positive. We still waiting for FED to deliver two more rate hikes until the end of the year. According Bloomberg analysts the possibility for a rate hike during the next FED's meeting is 98.2 %.
EUR - After Macron's victory at french presidential elections, the common currency remains strong. We expect later this year Mario Draghi to remove of modify QE, which will furthermore back the EUR.
CAD - The canadian dollar is among the weakest currencies at the market. The slump in the oil prices is negative for CAD because of the correlation between the two instruments. Another important factor is the sanction enforced by USA for lumber import and export from Canada to USA. This shows us that the relation between the two countries aren't perfect and there might be tension when NAFTA is renegotiated.
GOLD - The metal is among the biggest losers at the market in the moment. Macron's victory in France and calming of the geopolitical tension is highly negative for GOLD. Other negative factor is the increasing US inflation .
Trader Bozhidar Arabadzhiev
Varchev Traders Read more:
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