Trading day in one post 29.08.2017

Overview of the Asian markets: Asian shares fell on Tuesday as investors turned to safe-haven assets and U.S. futures opened lower after North Korea fired a missile. Japan's Nikkei 225 dropped 0.81 percent after a North Korean missile flew over the country early on Tuesday. Japanese Prime Minister Shinzo Abe said in a statement that the launch was reckless and unprecedented. Across the Korean strait, the Kospi tumbled 1.15 percent as investors processed the latest developments on the peninsula. The broader Kosdaq traded lower by 0.41 percent. Down Under, the S&P/ASX 200 declined 0.94 percent, with the financials and consumer discretionary sub-indexes leading losses. The risk off sentiment also appeared to weigh on greater China markets. The Hang Seng Index fell 0.77 percent. On the mainland, the Shanghai Composite shed 0.08 percent and the Shenzhen Composite was off by 0.031 percent.

Currency Markets: The yen advanced 0.4% to 108.81 per dollar. The euro slid 0.1% to $1.1970, while the franc gained 0.3%. The Aussie dropped 0.5%. The Bloomberg Dollar Spot Index was little changed. Investors are flocking to gold and the yen, pushing the 120-day correlation this month to the highest ever. Both have benefited from the dollar’s downward spiral as traders wager the Federal Reserve will be slow to raise interest rates this year. The yen also continues to gain as investors remain nervous about the political climate in Washington. “The firming in gold and the yen could in part reflect a more cautious global-market mood,” said Eric Viloria, a strategist at Wells Fargo Securities LLC.

Commodities Markets: Demand for havens sent gold to rally to the highest level this year amid escalating tensions after North Korea fired a ballistic missile over Japan. Bullion for immediate delivery gained as much as 0.9 percent to $1,322.41 an ounce, the highest intraday price since Nov. 9, and traded at $1,315.22 at 9 a.m in Singapore, according to Bloomberg generic pricing. Gasoline futures surged on Monday to the highest in two years as Tropical Storm Harvey continues to inundate southeastern Texas, crippling the core of the U.S. energy industry with refinery and pipeline closures. Gasoline for September delivery climbed as much as 11.33 cents to $1.7799 a gallon on the New York Mercantile Exchange, the highest intraday price for a front-month contract since July 2015. WTI crude rose 0.6% to $46.83 a barrel, retracing some of its 2.7% slide on Monday.

European stock market: The negative sentiment will cast a shadow above the European markets on the second day of the trading week. CAC is expected to open with 24 points in negative territory, DAX will register 62 points decline, and UKX will shed 33 points. Investors remain cautious during the Tuesday session, weighing in the political sentiment in Washington, as well as the geopolitical tensions around North Korea.

U.S. stock market: Dow closes lower after Hurricane Harvey hits Houston. Shares of oil refinery companies rose on Monday after Harvey, a Category 4 hurricane, forced refineries in Houston to shut down. Harvey, a hurricane that was later downgraded to a tropical storm, ravaged Houston and other parts of Texas over the weekend, with more than 30 inches of rain falling in some parts in just 48 hours. Houston is home to several of the major U.S. refineries. The Dow Jones industrial average fell 26 points, with Travelers contributing the most to the losses. The 30-stock index traded higher earlier in the session. The S&P 500 oscillated between gains and losses, with health care leading three sectors higher and energy the biggest decliner. The Nasdaq composite outperformed, rising 0.2 percent.

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

09:00 Europe - Gfk German Consumer Climate
15:30 Canada - IPPI
15:30 Canada - RMPI
15:55 USA - Redbook
17:00 USA - CB Consumer Confidence
17:30 USA - Dallas Fed Services Revenue
18:00 USA - Chicago Fed President Evans Speaks
18:30 USA - 4-Week Bill Auction
20:00 USA - 7-Year Note Auction

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