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- Trading day in one post 10.04.2017
Trading day in one post 10.04.2017
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Loading...Asian indices traded unanimously in one direction after US indices closed with slight drop the previous week. In the early hours hostilities were renewed against targets in Syria again.
Japan's Nikkei index has increased by 0.65%, Hang Seng is up by 0.15%, Australia's ASX200 rose by 0.13%, KOSPI dropped by -0.77% and Shanghai Composite decreased slightly by -0.24%.
After the news that there were fired new missiles against Syria, Oil opened higher with gap and gold also rose to $1271. WTI reached its highest level since early March levels around $ 52.53 a barrel.
Today, markets will reconsider NFP data on Friday and will likely have discussions about military action by Russia and Europe. USA has the support of other countries in the region and Europe. Analysts believe that these actions are only short term and investors remained calm and did not panic.
Economic data that will move the markets today:
11:30 EUR - Sentix Investor Confidence
15:15 CAD - Housing Starts
16:00 EUR - ECB's Constancio Speaks
17:00 USD - CB Employment Trends Index
17:00 USD - Fed Labor Market Conditions Index
23:10 USD - Fed Chair Yellen Speaks
USD - The dollar was supported by trade with risk aversion due to the events in Syria, NFP data on Friday and after the statement of Bullard of the Fed, it is likely that the Central Bank to take action to reduce the balance of purchased financial instruments during the period of incentives and reduce market liquidity. This can be negative for rapidly interest rates hike and the threefold increases to remain at issue. It is likely that the increases may be only two on in 2017. We remain long on the dollar, mainly USD/JPY, USD/NZD, and short to EUR/USD.
EUR - The euro remains under pressure, mainly by the dollar, but there were no major movements during the Asian session. Today is expected data on investor confidence and a statement by the ECB Constancio. There was a big reaction in the currency in hostilities and that means that investors probably believe that the actions will have a short-term character and this situation will not persist. We remain perpetually short of EUR/USD, as is likely to rise in the euro to Australian and New Zealander.
JPY - began to weaken during the Asian session after the secondary drowned in Syria and the better data on the current account of the country stopped its currency rise. This allows us to stay short to the currency. We remain long on USD/JPY.
Indices - markets remained calm after hostilities. Perhaps investors suggest that this is only a short-term situation that will not get deeper, but remain cautious, not only for this reason but also because of instability in Europe. The probability of correction increases, but we'll see which news or reason will have the power to push the indices down.
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