Varchev Finance: Trading day in one post - 17.10.2017

Asian trade session: Asian markets were trading mixed, while commodities rose due to good prospects for the Chinese economy. Japan Benchmark, Nikkei 225 hit a new 21-year high during the Asian session, but then dropped 0.09% and threatened the 10-day sequential growth. Profit tracking at most car manufacturers was offset by losses in the financial sector. Meanwhile Kospi traded 0.09% higher and ASX200 gained 0.58%. Markets in China declined due to the yuan, with Hang Seng and Hong Kong index traded at -0.14%. Shanghai composite fell 0.23%.

Currency market: The dollar rose against a basket of competitors, with the Dollar Index reaching 93,397. The greenback traded almost unchanged against the JPY, currently at 112.111. The euro is down for the fifth consecutive day after Austria's elections, where the leader of the People's Party, Sebastian Kurz, has turned to be the youngest leader in the world. The Common Currency is also struggling due to the crisis in Catalonia, where Prime Minister Carles Pudgemon still has no clear position on the status of the region. AUD and NZD are traded unchanged despite good economic data from the region. With pounds, volatility remains strong as investors, and not only expects Teresa May to negotiate a trade deal with the EU. Last week, the 5th round of the Brexit talks took place. No agreement was reached on important points, but the tone of the statements was accepted by the market as positive.

Commodities market: OIL has remained at a relatively high level against the news that Iraqi troops have captured parts of Kirkuk, a Kurdish-controlled area that is rich in oil reserves. Another positive factor for the price of black gold is the speculation of extending the OPEC agreement beyond 2018. During the Asian session Brent oil was trading with a 0.03% drop at $ 57.80 per barrel, while WTI was down 0.21% $ 51.88 per barrel. GOLD continued its downgrade after a failed $ 1306 break. The price of precious metal is directly influenced by US inflation and, as we do not see a significant increase, gold is rising.

US Stock Exchange: The first trading day of the new week in the US again ended with an increase. Dow Jones Industrial Average rose 84 points, and the S & P 500 was the best performing telecoms and financial companies. Losses on real estate have significantly reduced the index's growth. The Nasdaq benchmark benchmark adds 0.28% to 6116.15.
Netflix will publish its third-quarter report shortly after closing the session. Last week, the company's shares rose to a record high after Goldman Sachs predicted the technology company would have more subscribers than expected. The reporting season began with JP Morgan Chase, Citigroup and Bank of America last week, and this week is expected to see Goldman Sachs, Morgan Stanley, Verizon, and others.

European stock market: European markets are expected to open up, reflecting the positive sentiment in the US and Japan and the weaker euro. The German DAX is expected to open 5 points higher at a price of € 13,000. The CAC40 will start trading with 2 points lower at the price of € 5364. The UK100 is expected to start trading 4 points higher at a price of € 7541. Today, investors will focus on UK inflation figures and economic confidence in the eurozone. At 13:15, we expect a speech by Mark Carney, where we will watch for signs when Bank Of England will take action to raise the key rate.

Economic Calendar for European and US trade Sessions - 17.10.2017

11:00 Eurozone - Speech by Vítor Constâncio, Member of the ECB
11:30 UK - Consumer Price Index
12:00 Germany - ZEW current conditions
12:00 Germany - ZEW economic sentiment
12:00 Eurozone - ZEW economic sentiment
12:30 Eurozone - Speech by Peter Praet, Member of the ECB
13:00 Eurozone - Consumer Price Index
13:15 UK - Speech by Mark Carney, Governor of Bank Of England
15:30 USA - Import price index
16:15 USA - Industrial Production
23:30 US - API Petroleum Stocks

Read more:

• Central Bank monetary policy in 2018 – Where to expect changes
• The capital rotation between sectors, a good opportunity for bulls
• Chinese debt – the “new” problem facing global markets
• Markets in the US are expected to open with positive moods
• Should we expect big market growth if Theresa May won?