Trading day in one post 22.08.2017

Asian Markets wrap: Asian indexes were mixed on Tuesday as investors turned their attention to the U.S. Federal Reserve's annual symposium in Jackson Hole at the end of the week. Japan's Nikkei 225 erased earlier losses to trade flat. Across the Korean Strait, the Kospi climbed 0.30 percent shrugging off jitters seen in the Monday session when U.S.-South Korea military drills began. Down Under, the benchmark S&P/ASX 200 index rose 0.12 percent, as strength in the industrials and materials sub-indexes offset losses in the consumer staples sub-index. Greater China markets were mixed: Hong Kong's Hang Seng Index rose 0.85 percent in early trade, but mainland markets were subdued. The Shanghai Composite was shed 0.13 percent and the Shenzhen Composite slid 0.151 percent.

Currency market: The yen lost 0.3% to 109.27 per dollar, erasing Monday's gains. The Dollar Index rose 0.1%. It fell 0.3% on Monday. The Australian dollar was little changed at 79.38 U.S. cents. The pound has been sandwiched between the world’s two biggest currencies since the start of the year, making it hard to gauge how markets perceive the U.K. as Brexit negotiations progress. While sterling has gained nearly 5 percent against the dollar, it has fallen 6 percent versus the euro -- a trend that might be about to reverse, according to UBS Wealth Management. “Eventually, economic fundamentals assert themselves, and they suggest that the pound’s journey south against the euro is probably closer to the end than the beginning,” said economist Dean Turner. The euro’s rally this year has faltered recently after its surge to a 2 1/2-year high of $1.1910 sparked speculation that European Central Bank President Mario Draghi may be concerned that the currency’s strength will weigh down the European economy. The currency’s 12 percent rally so far this year is without precedent for the common currency since it started trading in 1999. Draghi will be among the officials addressing this year’s Jackson Hole summit, which comes as central banks in advanced economies creep toward the policy exit after years of unprecedented easing.

Commodities Market: Gold was down 0.2% to $1,288.93 an ounce following a 0.6% gain. Oil traded near $47 a barrel before U.S. government data forecast to show crude stockpiles extended declines, easing a glut.
Futures were little changed in New York after slumping 2.4 percent Monday. Inventories probably dropped by about 3.5 million barrels last week, according to a Bloomberg survey before an Energy Information Administration report on Wednesday. Libya halted loadings from its biggest oil field in the latest disruption to the OPEC nation’s crude production and shipments.
Oil in New York has fluctuated below $50 a barrel as investors weigh rising global output against supply cuts by the Organization of Petroleum Exporting Countries and its allies that is draining a global glut slower than expected. Compliance to the agreement was about 94 percent during July, according to two people familiar with the matter.

European Markets: European markets will open higher. DAX is 28 points up at 12,071. CAC will gain 11 points at 5,096 and UKX is up with 23 points at 7,318. According to Mario Draghi, the strength of the common currency is weighing down the economy and this might affect negatively the indices. Investors remain cautious before the meeting this Friday.

American Markets: U.S. equities oscillated between gains and losses on Monday as financial and technology stocks declined.
The Dow Jones industrial average fell just 7 point with Home Depot contributing the most gains and Goldman Sachs and Apple the most losses. The S&P 500 traded flat with information technology and financials among the worst performers and real estate outperforming. The Nasdaq composite lagged, dropping 0.26 percent.

Economic calendar for the European and U.S. trading sessions:

09:00 Switzerland - Trade Balance
12:00 Europe - German ZEW Economic Sentiment
12:00 Europe - ZEW Economic Sentiment
13:00 UK - CBI Industrial Trends Orders
15:00 Europe - ECB's Constancio Speaks
15:30 Canada - Core Retail Sales
15:55 USA - Redbook
16:00 USA - House Price Index
17:00 USA - Richmond Services Index
18:30 USA - 4-Week Bill Auction

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