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- Varchev Finance – Trading day in one post – 02.01.2018
Varchev Finance - Trading day in one post - 02.01.2018
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Loading...Asian Stock market - Asian markets traded with positive moods on the first day of the year, as most stocks gave back before and during the holidays. South Korea's Kospi is trading at a 0.24% rise, and the bottom line is the North Korean leader Kim Jong-un willingness to negotiate geopolitical risks in the region with the idea of minimizing them. Leading companies were Samsung and SK Hynix, with profits of 0.35% and 0.39%. In Australia ASX declined by 0.12% after healthcare companies dropped by 0.64% and those in the financial sector by -0.32%. Positive moods are also seen in the larger markets in China. The Hang Seng index of Hong Kong rose 1.55%, Shanghai composite by 0.86%, and Shenzhen by 0.44%. Growth followed as soon as China PMI production data was published - 51.6 vs 50.6 expected. Markets in Japan, New Zealand and Thailand remain closed. Shares in the region grew significantly last year, with the MSCI broad index in the Asia-Pacific region excluding Japan ending the year with more than 30% profits.
Currency market - The dollar index is again trading in red with -0.08%, given the risk appetite that benefited most AUD, NZD and CAD. Australian and New Zealander, as currencies directly related to China's economy grew by 0.49% and 0.18%. EUR and GBP are traded in a very narrow range without very large amplitudes. Against the backdrop of the increased risk appetite JPY remains in the background and investors are willing to close their long positions. CAD rose 0.38%, as oil managed to keep prices in the area around $ 60 for light crude oil. Today, during the European session, we are expecting production data from the Eurozone and the UK. If data show a similar growth to China, we expect support for the euro and pounds.
Commodity market - On the energy front, oil prices rose and held above $ 60 a barrel. Brent rose 0.42% to $67.15, with WTI only $0.28. Gold continues its rise, currently trading at about $1307 an ounce. Copper fell by -0.67% as much of the lobbies accumulated over the past month are now reaping profits and closing down on the price. In 2017, the precious industrial metal rose to 27%, the main driver being the slow delivery and the very positive prospects for global growth. The largest share of copper use in 2017. is the production of electric motors for electric vehicles. According to Codelco, the world's largest producer, copper prices will reach $10,000 in 2018, and according to UBS Group, this level will not be an obstacle and we will see extra profits.
European stock market - European stocks will start the session on positive territory, reflecting positivism accumulated in Asia. The Dax30 is expected to open upwards of 43 points. The French CAC40 will start trading 16 points higher, and the biggest increase at the beginning of the session is expected with the UKX, which will open 55 points higher. In the first hours of the European session, PMI production data will be published in the euro area and the UK. If data is better than in China, we expect positivism to increase and see extra profits.
US Stock Market - The leading Wall Street indices sent one of their strongest years with declines in the last day. 2017 was marked by indices. Markets have shown a surprising resilience to political crises and tensions between the United States and North Korea. Dow Jones increased its value by 21.5% for the whole year and the S&P 500 by 19.4%. One of the most profitable sectors for the past year is the technology, which led to a Nasdaq growth of 28.3% for the year.
Economic calendar for European and US trade sessions - 02.01.2018
10:15 Spain - Manufacturing PMI
10:45 Italy - Manufacturing PMI
10:50 France - Manufacturing PMI
10:55 Germany - Manufacturing PMI
11:00 Eurozone - Manufacturing PMI
11:30 UK - Manufacturing PMI
16:45 USA - Manufacturing PMI
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