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- Trading day in one post 11.08.2017
Trading day in one post 11.08.2017
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Loading...Overview of the Asian markets: Stocks tumbled in Asia, following a U.S. slump overnight, as investors headed for havens from what hedge-fund manager Ray Dalio termed a game of chicken between U.S. and North Korean leaders. Equities in Australia and South Korea declined after the S&P 500 Index halted an unprecedented stretch of calm on American equity markets and the CBOE Volatility Index soared 44 percent. U.S. President Donald Trump dialed up his warning to North Korea on threats to American allies.
Currency markets: Bloomberg Dollar Spot Index fell with 0.1%. EUR remained at $1.1771. The Aussie slit 0.1% to 78.66 U.S. cents. RBA's Lowe said the next move in interest rates will likely be up, though that won't be happening for some time.The dollar set an eight-week low against the yen on Friday as escalating tensions between the United States and North Korea triggered yet more investor flight to safety. The dollar slipped to as low as 109.11 yen in early Asian trade on Friday, its lowest level since June 14, when the greenback had fallen to as low as 108.81 yen. Below that level lies another key support level for the dollar on technical charts at 108.13 yen, a trough the greenback touched in mid April.
Commodities markets: Gold prices eased slightly after rising to their highest levels in more than two months on safe haven demand. Spot gold traded traded as high as $1,288.92 an ounce on Friday, compared to levels around the $1,257 mark earlier this week. Oil in New York has lumbered through the week, heading for the narrowest weekly trading range in four months. West Texas Intermediate has swung below$50 a barrel within a tight range of $1.87, the lowest since $1.47 set in early April. There’s no convincing data at the moment that is allowing bulls or bears to get excited, according to Daniel Hynes, a Sydney-based analyst at Australia & New Zealand Banking Group Ltd.
European markets: The geopolitical tensions will cast a shadow over the European bourses. French CAC will open lower with 10 points at 5,0767, DAX will lose 28 points, opening at 11,927 and FTSE 100 will remain unchanged. Today's focus will be on the inflation reports in the eurozone.
U.S. markets:Rising geopolitical tension rattled financial markets around the world Thursday, sending U.S. stocks to the biggest loss since May and stoking demand for haven assets. The S&P 500 Index halted an unprecedented stretch of calm on American equity markets and the CBOE Volatility Index spiked to its highest since April after President Donald Trump dialed up his warning to North Korea on threats to American allies. Gold surged to a nine-week high, the yen advanced and Treasuries strengthened. The S&P 500 Index lost 1.5% to 2,438.25. The Nasdaq Composite Index sank 2.1% and the Dow Jones Industrial Average lost 200 points. Investors will focus today on the inflation report in the U.S. Treasury yields may climb from a six-week low if Friday’s U.S. consumer price data merely meet expectations, as the market is on high-alert for evidence that inflation is heating up and supporting the Federal Reserve’s case for higher interest rates. Two Fed officials called subdued inflation a problem in comments Monday, heightening traders’ sensitivity to this week’s release. The stakes may be even higher, and the snap-back in yields more severe, after haven-buying spurred by escalating tension between the U.S. and North Korea. Yet if the data disappoint, there’s now less room for Treasuries to extend a rally with 10-year yields at 2.2 percent, not far above this year’s lows. The consumer price index probably rose at a 1.8 percent annual pace in July, quickening from a 1.6 percent clip in June, a Bloomberg survey shows. The index fell the past four months, fueling skepticism about the Fed’s claim that stubbornly low inflation is transitory and that tighter policy would be appropriate. Weaker-than-forecast producer price data Thursday didn’t help the central bank’s case.
Economic calendar for the European and U.S. trading sessions:
09:00 Europe - German CPI
15:30 USA - Core CPI
15:30 USA - CPI
16:40 USA - FOMC Member Kaplan Speaks
17:30 USA - ECRI Weekly Index
18:00 USA - Cleveland CPI
18:30 USA - FOMC Member Kashkari Speaks
20:00 USA - U.S. Baker Hughes Oil Rig Count
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