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- Trading day in one post 16.05.2017
Trading day in one post 16.05.2017
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Loading...Asian markets were mixed in Tuesday trade.
The Nikkei 225 gained 0.03 percent. It traded at its highest levels since December 2015 earlier in the session. The Kospi reversed earlier gains to trade lower by 0.03 percent. Australia's S&P/ASX 200 rose 0.08 percent.
Greater Chinese markets were in the red. The benchmark Hang Seng Index was down 0.28 percent. The Shanghai Composite fell 0.51 percent and the Shenzhen Composite shed 0.011 percent.
During the asian hours U.S. crude gained 0.45 percent to trade at $49.07 a barrel while Brent crude added 0.39 percent to trade at $52.02.
U.S. West Texas Intermediate crude jumped more than 3 percent during the session yesterday following the news. Saudi Arabia and Russia are the world's top two oil producers.
Over in the U.S., equities rose more than 0.4 percent across the board, with energy stocks contributing to the gains. The S&P 500 finished the session 0.48 percent higher while gains in tech and cybersecurity stocks caused the Nasdaq to rise 0.46 percent.
The dollar index, which measures the dollar against a basket of foreign currencies, sank to trade at 98.808. It had traded at levels around the 99 handle last week.
The news from Washington Post, that the president of USA, Donald Trump, leaked classified information to Islamic country cause USD to slide. But on the other hand hedging instruments like GOLD and JPY were appreciated.
Economic calendar for the European and American trade sessions
9:45 France - CPI
11:30 UK - CPI,PPI
12:00 Germany - ZEW Economic sentiment
12:00 EU - GDP
12:00 EU - Trade balance
15:30 USA - Building permits
16:15 USA - Industrial production
16:30 UK - CB Leading index
18:30 EU - ECB's Nowotny speaks
20:00 EU - ECB's Coeure speaks
USD - The dollar slided because of the news that Donald Trump leaked classified info to Islamic country. In short-term the sentiment for USD is negative. We still are about to see on the next FED' meeting in June, are the officials are going to hike the rate. According analysis the chance for a rate hike is above 90%.
CAD - The canadian dollar gained after the oil prices jumped. The correlation between these two instruments is strong. if we continue to see upward momentum in the oil prices, it better to remain long on CAD.
EUR - Euro is among the strongest currencies at the market. The speculation for reducing QE later this year is positive for EUR. Geopolitical tensions are calming down and investors are confident to invest in the region. We remain positive toward the common currency.
JPY - After the news from Washington Post, JPY gained fast. The investors preferred JPY in unexpected negative events. But still, we are negative toward JPY in the middle-term.
Trader Bozhidar Arabadzhiev
Varchev Traders Read more:
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