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- Varchev Finance: Trading day in one post 01.02.2018
Varchev Finance: Trading day in one post 01.02.2018
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Loading...Asian stock market: Asian markets are trading with mixed moods. Japan's Nikkei posted a 1.23% rise as the energy sector reported a 2.36% increase due to the rising oil price. Korean Kospi also rose - by 0.13%. Australian ASX added 0.9% to its value. Financial and materials sectors reported the highest increase: 1.17% and 1.06%. But the Chinese markets were deep in red territory. Hang Seng dropped 0.44%. Shanghai composite and Shenzhen composite wiped out 1.11% and 2.4% of their value.
FX market: The downward trend of USD continues. At the announcement of the interest rate on Wednesday, the US currency had a short-term upside momentum that was quickly lost. Although the FOMC has revised its inflation forecast to a more positive one, the bulls of the dollar seem to have little confidence. The market estimates the probability of an increase in the US interest rate at the next FED meeting of 93%. Still, investors are straying from the dollar. The market is being prepared for the NFP data we see on Friday as well as the average hourly wage. If the data higher than expected, we will probably see a strong upward momentum in the greenback. The dollar index is traded at levels of 89.11. CAD remains among the strongest currencies on the market. Economic data from the country continues to exceed expectations. The high oil price also contributes to a strong CAD. Today we expect data on PMI in the manufacturing sector in the country. If the data is above expectations we will see upward momentum of CAD. The speculation of another interest rate increase in 2018. are beginning to be heard. Inflation in the country allows tightening monetary policy and, as Poloz said: "If the economic data continues to be above expectations, the bank will act." AUD/NZD remain at low levels. Bulls on the market choose not to invest in AUD and NZD, although risky assets are currently in vogue. Why? Bearing in mind that the interest rate in Australia is 1.5%, and in New Zealand 1.75%, there is no reason why investors pour money into their economies, as the interest rate in the world's largest and most secure economy, the US, is 1.5 % (soon 1.75%), Canada 1.5%. Market participants prefer investing in safer and more stable economies, but the return will be roughly the same.
Commodities market: GOLD did not register major price changes during the Asian session. The price of precious metal remains quite high despite the risk appetite of investors at record levels. The reason for this is the weak dollar and low inflation in the United States. For the moment, GOLD remains a little bit higher than in 2018. If we see a breakthrough over it, the upward momentum is likely to resume. OIL: futures indicate a rise in oil prices during the Asian session. WTI rose 0.3 percent to $64.91 a barrel, and Brent added 3 cents to its value and traded at $68.89 a barrel. The OPEC agreement aims to raise prices, but on the other hand, the US and Canada are increasing their productions as a result of this price increase, which will ultimately offset the downgrade by OPEC.
European stock market: European indices will start the session in positive territory. The German DAX will open with 30 points increase around price 13230eur., a French CAC with a 15 point increase around 5495eur and a UKX with a 25 points increase of 7553 pounds. The economy of the Union has not lost its upward momentum and the sentiment remains very positive, which suggests that long positions are more logical. With appropriate adjustment levels, we will look for long positions.
American Stock Market: American benchmarks began to erase the losses accumulated by the two-day correction. The correction was small and short-term .. it is now time for the bulls to take the wheel again. The tech index should rise after Facebook reports revenue for the fourth quarter of 2017. above expectations. We remain positive about US stock indices.
Economic calendar for the European and American trade sessions 02.01.2018
8:45 Switzerland - SECO Consumer climate
10:15 Switzerland - Retail sales
10:30 Switzerland - SVME PMI
10:50 France - Markit manufacturing PMI
10:55 Germany - Markit manufacturing PMI
11:00 EU - Markit manufacturing PMI
11:30 UK - Markit manufacturing PMI
15:30 USA - Initial jobless claims
16:30 Canada - Markit manufacturing PMI
16:45 USA - Markit manufacturing PMI
17:00 USA - Constructions expenses
17:00 USA - ISM Markit manufacturing PMI
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