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- Trading day in one post 25.08.2017
Trading day in one post 25.08.2017
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Loading...Overview of the Asian markets: Most of the indices in Asia were trading higher overnight, despite of the lower close on Wall street. Investors are awaiting the speeches from Janet Yellen and Mario Draghi during the economic symposium. They await to understand any details in regards to the status of the economy and how FED will move forward with the rates. Most likely there will be no major change in monetary policy of both countries. Japan's Nikkei 225 was up by 0.45%. Korean Kospi was up by 0.15%. In Australia, ASX 200 was trading without a significant change with only -0.03%, as the sub-sector of the energy and utilities were higher. Hang Seng was up by 0.61%. Shanghai composite went higher by 0.98%.
Overview of the FX market: The JPY was trading lower as the USD/JPY was higher around 109.60. The DXY went up to 93.33. The Euro hoover around $1.1800, but there is the possibility to correct lower, during the speech from Draghi today. The USD might jump higher, but in order to hold its gains, the economic data must continue to come out better than expected. The currencies of the developing countries might slow their rise in the second half of this year, as they have been going up since the start of the Jan and now are trading above their 15 year averages, this will help the USD to straighten.
Commodities Market: Gold was trading very light, almost with no change around $1,287, but it was not able to break up above the strong horizontal resistance at $1,295-1,300 zone. If the indices continue to go up it might start to head lower again. If there is a break above the resistance, then its possible that it will continue to go up until the next target around the zone of $1,350-1,400. The Crude Oil also remained unchanged at $47.75 per barrel overnight. The trend remains bearish after it broke diagonal support and made a test of the break, but now there is another important factor to consider and that is the hurricane season and the first storm. There is reports of closed oil rigs in the Gulf of Mexico already and that will disrupt the oil supply. Steel was up strongly by 3.28%, as well as copper up by 1.28%.
Overview of the European markets: The big European indices are expected to open at the same levels as they closed the previous session. Investors are cautious and remain on the side lines before the speeches from the Central Bankers. Mario Draghi gave little to no details in regards to the next steps of the ECB in regards to the interest rates during his speech on Wednesday, before the symposium. The President of the ECB has learned from his mistakes from the past and does not comment on how and when he might increase rates or decrease the size of the stimulus package. If investors remain positive, its possible to see the indices higher again, but if they focus on the negative factors, the correction might continue. The German DAX might open with +13 points to 12,207, The French CAC will open around 5,125 by 6 points higher and FTSE will open around 7,418 with no change.
Overview of the American Markets: American stocks closed lower today, due to the planned event in Jackson Hole. If Janet Yellen's tone is positive for the economy and the inflation we might see continuation of the correction of the markets. But it has to be in parallel with a signal for possibly higher rates and stronger USD. The markets are now pricing in only a 30% chance for higher interest rates for a third rise this year, as the inflation figures are below FED's target of 2%. It is more likely to see higher indices again and lower USD. The fight between the Republicans and Democrats in Washington continuous and its very hard for the Trump's administration to complete its reforms and that is the root of the USD weakness. Investors turn their attention to the economic factors, as the tensions around N. Korea died down. Retailer's stocks jumped, after the figures show that sales were not as bad as they were anticipated. Traders also watching closely the discussions around the debt ceiling, after the President's comments for the appropriation of funds for the wall between USA and Mexico.
DJIA: -28.69 points/ -0.13% - 21,783.40
S&P: -5.07 points/ -0.21% - 2,438.97
NASDAQ: -7.08 points/ -0.11% - 6,271.33
RUSS 2000: 3.96 points/ 0.29% - 1,373.67
VIX: 12.47
The S&P showed only one positive area and that is the health sector by 0.28%, all other areas were weaker today, with the consumer staples down by -1.34%.
For Dow Jones, higher was trading the energy stocks by 0.30% and the most loss showed consumer staples by -0.88%.
Economic calendar for the European and American trading sessions:
09:00 - Germany - German GDP (QoQ) (Q2)
09:00 - Germany - German Import Price Index (YoY) (Jul)
09:45 - France - French Consumer Confidence (Aug)
11:00 - Germany - German Ifo Business Climate Index (Aug)
15:30 - USA - Core Durable Goods Orders (MoM) (Jul)
17:00 - USA - Fed Chair Yellen Speaks
20:00 - USA - U.S. Baker Hughes Oil Rig Count
Tentative: Jackson Hole Symposium
22:00 - Euro zone - ECB President Draghi Speaks
US Equity Upgrades
ARCHROCK (AROK) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
ARCHROCK PARTNERS LP (APLP) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
DSW (DSW) UPGRADED TO BUY FROM NEUTRAL AT B. RILEY
ESSENT GROUP (ESNT) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT KEEFE BRUYETTE
G-III APPAREL (GIII) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT PIPER JAFFRAY
IAMGOLD (IAG) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT BMO CAPITAL
INTUIT (INTU) UPGRADED TO EQUAL-WEIGHT FROM UNDERWEIGHT AT FIRST ANALYSIS
JD.COM (JD) UPGRADED TO BUY FROM NEUTRAL AT MKM PARTNERS
ONEMAIN HOLDINGS (OMF) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT STEPHENS
ROCKWELL COLLINS (COL) UPGRADED TO BUY FROM HOLD AT VERTICAL RESEARCH
VALERO ENERGY PARTNERS (VLP) UPGRADED TO BUY FROM HOLD AT JEFFERIES
VIPER ENERGY (VNOM) UPGRADED TO BUY FROM NEUTRAL AT MIZUHO
US Equity Downgrades
CREE (CREE) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT STEPHENS
DULUTH HOLDINGS (DLTH) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT RAYMOND JAMES
TINTRI (TNTR) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT MORGAN STANLEY
ULTRAGENYX (RARE) DOWNGRADED TO HOLD FROM BUY AT SUNTRUST
US Equity Initiations
ADVANCED ENERGY (AEIS) INITIATED WITH A HOLD AT STIFEL
AMERICA'S CAR-MART (CRMT) INITIATED WITH AN EQUAL WEIGHT AT STEPHENS
ANSYS (ANSS) INITIATED WITH A HOLD AT BERENBERG
ASPEN TECHNOLOGY (AZPN) INITIATED WITH A BUY AT BERENBERG
AUTODESK (ADSK) INITIATED WITH A BUY AT BERENBERG
CYMABAY (CBAY) INITIATED WITH AN OUTPERFORM AT LEERINK
ELEVATE CREDIT (ELVT) INITIATED WITH AN EQUAL WEIGHT AT STEPHENS
HP ENTERPRISE (HPE) INITIATED WITH A HOLD AT LOOP CAPITAL
HP INC. (HPQ) INITIATED WITH A BUY AT LOOP CAPITAL
NATURAL GAS SERVICES (NGS) INITIATED WITH AN OUTPERFORM AT IMPERIAL CAPITAL
NATURAL GAS SERVICES (NGS) INITIATED WITH AN OUTPERFORM AT IMPERIAL CAPITAL
PTC (PTC) INITIATED WITH A BUY AT BERENBERG
REGIONAL MANAGEMENT (RM) INITIATED WITH AN EQUAL WEIGHT AT STEPHENS
SAP (SAP) INITIATED WITH A BUY AT BERENBERG
SUPERIOR DRILLING (SDPI) INITIATED WITH AN OUTPERFORM AT IMPERIAL CAPITAL
SUPERNUS (SUPN) INITIATED WITH AN OUTPERFORM AT IMPERIAL CAPITAL
TRIMBLE (TRMB) INITIATED WITH A HOLD AT BERENBERG
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