Trading day in one post 09.03.2017

Most of the Asian indices were trading lower this Wednesday, with the exception of the Japanese Nikkei. They followed the American markets as they closed lower for the 3rd straight day. Investors are careful with expectations for Euro Zone rate decision today and the upcoming Non-Farm Payroll report on Friday. Also the chances of FED raising the rate on March 15, did hit 100%.

Japanese Nikkei was trading slightly higher by 0.33%, Australia ASX fell by -0.43%. Shanghai composite also down by -0.85%, where the Shenzhen composite lost -0.59%. Hang Seng was down by -0.96%. Kospi traded in the red by -0.98%.

US indices closed lower with DJIA fell by -0.33%, S&P was down with -0.2% and Nasdaq up by 0.06%. DXY reached 102.20. USD/JPY was trading up again up to 114.500.

Crude Oil futures fell fast down to around $50 per barrel after the Energy Administration came out with data showing storage increased by 8.2 M barrels for last week. If this situation remains, we might see lower prices of the indices and the start of a possible correction.

Calendar for the European and American sessions:

08:30 - France - French Non-Farm Payrolls (QoQ) (Q4)
08:45 - Swiss - Unemployment Rate s.a. (Feb)
Tentative - China - New Loans
Tentative - Euro zone - EU Finance Ministers Meeting
14:30 - USA - Challenger Job Cuts (Feb)
14:45 - Euro Zone - ECB Interest Rate Decision (Mar)
15:30 - USA - Export Price Index (MoM) (Feb) and Import Price Index
15:30 - USA - Initial Jobless Claims
15:30 - CAD - Capacity Utilization Rate (Q4)
15:30 - CAD - New Housing Price Index (MoM) (Jan)
15:30 - Euro zone - ECB Press Conference
16:45 - USA - Bloomberg Consumer Confidence
17:30 - USA - Natural Gas Storage
23:45 - NZD - Electronic Card Retail Sales (YoY) (Feb)

USD - Today we are expecting Initial jobless Claims from US, better than expected data will support the USD. Next FED meeting is coming closer on March 15, in the anticipation of a possible rate hike, the chances did reach 100%. We do expect the dollar to raise.

GBP - The GBP is trading stable this week. The process for activation of Article 50 is delayed as expected and that can have some positive effect on the currency. We do remain short on the currency but we will watch the price action after FED's meeting for a clear direction against the USD.

CAD - The sentiment is positive for the currency and it has been trading higher, but the price of Oil did fall fast and hard, this may have negative impact on the currency. Its possible to see a correction towards the currency for better levels for long positions.

Индекси - 3rd day on a row of negative close for the indices and this might be a possible correction now partly caused by the fast fall of the Oil price. Investors are cautious and for now we will stay on the side lines and watch for possible longs after correction and clear signal for long.

Read more:

• 100% Chances of a rate hike – Is there such a thing on the financial Markets?
• China cut it’s GDP target, indices and AUD under pressure