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- Trading day in one post 10.05.2017
Trading day in one post 10.05.2017
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Loading...Equities in Asia were in the green on Wednesday.
Japan's benchmark Nikkei 225 index was up 0.45 percent while the Kospi edged up by 0.24 percent. The ASX 200 was reversed earlier losses to gain 0.34 percent as investors in digested the release of the federal budget yesterday after the market close.
Markets in greater China were also in the green, with Hong Kong's Hang Seng Index up 0.42 percent. The Shanghai Composite was marginally higher, trading higher by 0.04 percent, while the Shenzhen Composite added 0.195 percent.
In currency news, the dollar weakened against a basket of rivals after three consecutive sessions of gains to trade at 99.422. The move lower came after Trump's surprise dismissal of FBI Director Comey.
Shares of major Australian banks fell more than 1 percent in early trade following the news of the bank levy but later stabilized. Westpac was down 0.64 percent, Commonwealth Bank was off 0.6 percent and National Australia Bank was 0.48 percent lower.
Meanwhile, oil prices edged up after falling 1.2 percent in the previous session. Brent futures added 0.64 percent to trade at $49.03 a barrel and U.S. crude was 0.74 percent higher at $46.22.
Stateside, equities were lower on the back of comments from North Korea indicating the country would continue with its nuclear tests.The new are negative for the indexes, but positive for JPY.
Economic calendar for European and American trade sessions
9:45 France - Trade balance
14:00 USA - Mortgage market index
15:00 EU - ECB President speaks
15:30 USA - Import and Export price index
17:40 USA - Crude oil inventories
19:00 USA - FOMC Member Rosengeren speaks
21:00 USA - Federal budget balance
USD - Dollar managed to return part of it's losses in the past couple days. At the moment is being traded around 1.09 against the EUR. Is the price remain below that key level is highly likely to see USD buyers to appear. The sentiment for USD remains positive.
JPY - After the news that North Korea will proceed with the 6th nuclear test, send JPY higher. The instrument is used by the investors as a hedge in a environment of market uncertainty. Most likely this will continue is the geopolitical tension escalates. We remain cautious with JPY.
CAD - The canadian dollar is pretty weak in the last few weeks, thanks to lower oil prices. The speculation for extending the agreement between OPEC and other large oil exporters should be in favor of oil. But the reality is different. USA and Canada are taking advantage from this contract and they are pumping oil and thus decreasing oil prices. We remain negative toward CAD.
GOLD - The increasing inflation in USA and the global calamity is negative for the precious metal. GOLD is performing at it's best when the market is uncertain and volatile. If levels around 1200 being reached, we may look for a long positions.
Trader Bozhidar Arabadzhiev
Varchev Traders Read more:
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