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- Trading day in one post 17.08.2017
Trading day in one post 17.08.2017
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Loading...Overview of the Asian markets: Asian stocks extended a global slide after terrorists struck a crowded tourist street in Barcelona, exacerbating unease triggered by mounting concerns about dysfunction in President Donald Trump’s administration and U.S. policy paralysis. Equities fell from Tokyo to Sydney after the S&P 500 Index on Thursday tumbled 1.5 percent, its second-biggest drop for 2017. Volatility in Japan, South Korea and Hong Kong increased after a measure of market fluctuations spiked higher during U.S. trading, while Australian bonds rose with the yen as investors sought havens. Japan's Topix index fell 1%, Australia's ASX was down 0.7% and the Kospi index declined 0.2%. Hang Seng fell 0.7%.
Overview of the FX market: The dollar fell for a third day against the yen as the fallout from President Donald Trump’s remarks on violence in Charlottesville continued to reverberate, raising questions over his ability to retain his team and focus on the economic agenda. The yen strengthened against its major peers and gold held a two-day gain as a terrorist attack in Spain also fueled demand for the safest assets. Rumors that former Goldman Sachs President Gary Cohn would resign as head of the national economic council rattled financial markets Thursday, until reports that he’d opted to stay. Cohn was said to be particularly upset over Trump’s comments. USD/JPY falls 0.1% to 109.48 versus session low of 109.30. Further consolidation under 100-DMA expected. First support: 109.00 Aug.14 low; 2nd support: 108.74 Aug. 11 low. The euro was up 0.1% to $1.1732, after slipping 0.4% Thursday. The Aussie rose 0.2% $78.97 U.S. cents. Australia's central bank hasn't raised borrowing costs since 2010. An upward move may lie ahead. Businesses are remaining confident, and that is helping to back bets among swaps traders that the Reserve Bank of Australia will increase benchmark borrowing costs in a year or so from now.
Commodities market: West Texas Intermediate crude was little changed at $47.08 a barrel, heading for a 3.5% slump on the week. Gold was down 0.1% at $1,287.26 an ounce. Gold supply from mines has fallen "dramatically" this year, bolstering prices of the safe-haven asset in the face of geopolitical tensions, ANZ said in a note on Thursday. Gold production has fallen 2 percent in the first five months of 2017 from the same period a year ago, Hynes added, citing data from the World Bureau of Metal Statistics. Production in the month of May alone was down 3.1 percent from a year ago.
Overview of the European market: European markets will open slightly changed on the last trading day of the week. DAX will open 2 points higher at 12,122.30, CAC grew with 4 points to 5,109.70 and UKX will open around 7,245.80, up with 7 points. Investors remain cautious due to the recent terrorism attack in Spain.
Overview of the U.S. market: U.S. equities fell on Thursday on concerns President Trump's recent controversies will make it less likely for Congress to work with him to pass business-friendly legislation. The Dow Jones industrial average fell about 270 points. Cisco Systems was the biggest decliner on the Dow despite the company posting quarterly results that were largely in-line with expectations. The index started falling earlier on fears that Gary Cohn, a business friendly advisor to the president, could resign his role as director of National Economic Council because of Trump's remarks following the violent protests in Charlottesville, VA. The S&P 500 pulled back by 1.5 percent, with information technology leading all sectors lower. The Nasdaq composite lagged, falling 1.9 percent. The S&P 500 index recorded its second worst day of the year, down 1.5%, as Donald Trump exacerbated the disputes brought about by the racist incident in Virginia, and after the terrorists attack on a crowded street in Barcelona. VIX has also increased. Despite the turmoil, US 500 is only 2.1% below the record levels of 10 days ago.
Economic calendar for the European and U.S. trading sessions:
09:00 Europe - German PPI
11:00 Europe - Current Account
15:30 Canada - Core CPI
17:00 USA - Michigan Consumer Expectations
17:15 USA - FOMC Member Kaplan Speaks
17:30 USA - ECRI Weekly Index
20:00 USA - U.S. Baker Hughes Oil Rig Count
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