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- Varchev Finance: Trading day in one post 02.04.2018
Varchev Finance: Trading day in one post 02.04.2018
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Loading...The Asian Stock Market: Asian shares slipped on Tuesday, with Japan leading losses in the region as investors digested the sell-off seen stateside amid a drop in tech stocks and trade-related worries. Japan's Nikkei 225 declined 0.79 percent amid broad-based losses, but was off its session lows. The broader Topix slid 0.49 percent, with oil and gas the worst-performing sector index in the morning. Over in South Korea, the Kospi slid 0.82 percent as technology stocks weighed on the broader index, taking cues from the declines on Wall Street. Samsung Electronics fell 2.02 percent. The Hang Seng Index edged down by 0.45 percent as property developers and tech stocks came under pressure. On the mainland, the Shanghai composite slipped 0.78 percent and the Shenzhen composite eased 0.86 percent.
FX Market: Against the backdrop of another market selloff due to fears about regulations in the technology sector, as well as uncertainty about the likely international trade war, the yen recorded new profits. As a highly preferred hedging instrument in forex markets, the Japanese currency ranked first in the list of market participants who want to hedge their portfolios and protect themselves from big losses. The Bloomberg Dollar Spot Index lost 0.1%. The euro for its part remained without a significant change to $ 1.2308.
Commodities market: Oil in West Texas slumped last week to end March at the lowest level in three years relative to U.S. benchmark prices as surging output from the prolific Permian Basin fills up pipelines leaving the area. Shippers are forced to pay higher rates to squeeze oil into the last bits of available space on lines heading to the nation’s storage hub in Cushing, Oklahoma, and refineries along the Texas Gulf Coast. The situation may get worse before it gets better, with new wellsseen coming online faster than new pipelines through the rest of this year. In the current session, WTI rose 0.2% to $63.16 a barrel. Gold fell 0.2% to $1,338.48 an ounce, after jumping 1.2% yesterday.
European stock market: The bloodbath is spreading fast above Europe. There, European indices are expected to open up with extreme losses. The German DAX will start the session with a 136 point loss at 11,983; The French CAC will register about 62 points decline and will start trading at 5,116; while the UKX has a 50-point decrease at about 7.018. Today, traders are expecting manufacturing PMI figures in the UK, Germany and the Eurozone - data that can spark optimism and provide short-term support to key benchmarks. The news about China's trade relations with the United States, as well as the pressure on technology companies, will determine the medium-term trend of the indices, and the fact that US benchmarks have closed below their 200-year period (back in correctional territory) - causes more pain for investors.
U.S. stock market: he S&P 500 Index fell below its 200-day moving average for the first time since the worst of this year’s market correction as the tech rout and international trade concerns carried over into the second quarter. The benchmark trailed that key support level by as as much as 13 points as stocks fell as much as 2.6 percent on Monday. Investors have watched the gauge bounce around the 50-day and 100-day moving averages during this year’s sell-off, while it has only flirted with the 200-line since late March. The S&P has now moved below its 200 day MA at 2589.83. A close below that MA will be the first since June 2016 (one day close below the line). Back in February,the price dipped below the line (low reached 2532.69). In March, the low on March 23rd, reached 2585.89 with the 200 day MA at 2585.22. If there is to be a rebound, getting and staying above that MA will be eyed. Until then, the bears remain in control. "The market leaders are under pressure," said Marc Chaikin, CEO of Chaikin Analytics. "It's a situation where the proven winners for the past few years are faltering." When that happens, "there is a negative psychological sense in the market."
Economic calendar for the European and U.S. trading sessions:
09:00 Germany - Retail Sales
11:00 Europe - Markit Manufacturing PMI
11:30 UK - Markit Manufacturing PMI
15:55 USA - Redbook
16:30 USA - FOMC Member Kashkari Speaks
Trader Aleksandar Kumanov Read more:
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