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- Trading day in one post 09.06.2017
Trading day in one post 09.06.2017
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Loading...The pound weakened on Friday in Asia in volatile trade on the ebb and flow of actual results and an exit poll suggested a hung parliament in the U.K. after Thursday's election, with regional indexes mostly higher.
Asian markets appeared to mostly shrug off the political uncertainty in the U.K.
Japan's Nikkei 225 rose 0.74 percent and the Kospi gained 0.59 percent. Australia's benchmark S&P/ASX 200 index climbed 0.02 percent higher.
The Hang Seng Index was up 0.05 percent in early trade while markets on mainland China traded in the red. The Shanghai Composite was down by 0.11 percent and the Shenzhen Composite was off by 0.042 percent.
Oil prices were slightly lower. Brent crude dipped 0.17 percent to trade at $47.78 a barrel and U.S. crude shed 0.2 percent to trade at $45.55.
In China, the consumer price index (CPI) for May rose 1.5 percent on year, in line with a Reuters poll, but dipped 0.1 percent on month. Meanwhile, the producer price index (PPI) reflected a 5.5 percent rise on year.
Economic calendar for the European and U.S. trading sessions
09:00 Germany - German Export
09:00 Germany German Import
09:00 Germany - Trade Balance
11:30 UK - Industrial Production
11:30 UK - Trade Balance
15:30 Canada - Employment Change
17:30 USA - ECRI Weekly Index
20:00 USA - Baker Hughes Oil Rig Count
EUR - ECB's decision failed to make a more lasting impact on the markets, as investors turned their focus towards Comey's testimony and the UK General Election. However, the common currency weakened, as Mario Draghi signaled, that the inflation in the region remains weak, staying on the way of economy growth.
Indices - U.S. stocks closed on positive territory, as investors digest Comey's testimony in front of the Senate. DJIA closed 8 points higher, as Goldman Sachs was the biggest contributor. In his testimony, Comey stated, that he recorded all of his conversation with the President, something he didn't do, when Obama was still in charge, because he thinks, that Trump could lie to him. Investors await reaction from Trump's administration, as it might have further impact on the markets.
GBP - The GBP slid with 250 pips, as an exit poll suggested, that Theresa May's party will win the election, but will fell short of the 326 seats needed for majority. GBP/USD fell from $1.2977 to $1.2692 during the Asian session, after which it erased some of the losses. Despite the Conservatives victory, it will be a hung parliament, and a coalition will be needed. This will stall and complicate the Brexit negotiations. Investors remain wary for how the markets will price in these news after the end of the election. We remain short on GBP.
Jr Trader Alexander Kumanov
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