Varchev Finance: Trading day in one post 03.11.2017

Asian trade session: Asian stocks were trading mixed, after the highly volatile US session. The engine of the market was the proposed changes to the US Tax Code and the new appointment for President of the Fed by Jerome Powell. Kospi declined by 0.17%, despite strong growth in the automotive sector in the country. Samsung fell by 2% despite the good financial reports of both Apple and Samsung Electronics. ASX200 rose 0.42%, with Kingsgate with + 5.68% and Newcrest Mining + 2.67%. The markets in China were trading mixed with Hang Seng rising by 0.31%, while Shanghai composite and Shenzhen fell by -0.74% and -0.56%, respectively.

Currency market: AUD fell sharply after the country recorded weaker data on retail sales and is currently traded at -0.31% lower. USD is traded unchanged against most currencies, despite strong US fundamentals. On the USD, investors are waiting for the employment report, which will make it clear to what extent hurricanes Harvey and Irma will affect new jobs in the country. NZD remains the strongest currency driven by better data in China + 0.24%. Today we expect Non Farm Payrolls data, with expectations very positive. We expect the data to have a strong impact on the dollar and the indices.

Commodity market: Against weak trading in the stock market, GOLD traded slightly upward from yesterday. We expect the weak volatility to remain until the US employment report comes out at 14:30 today. Oil continues to struggle with levels of resistance between $54 and $55 per barrel, with the foundation starting to change to a negative. The levels are key and we expect increased volatility by keeping track of the price for a breakthrough or Price Action for Sell.

European stock market: European markets will follow the example of the US and Asia and start the mixed sessions. The German DAX30 is expected to start trading at 13,473 or 10 points. In France, the CAC40 will open 10 points lower at 5507.9. On the island FTSE100 will start the green trade with 5 points increase at the price of 7568.2. Today, trade will be weak on European news, but we expect the US employment data, which will directly affect the indices and the dollar, at 14:30. We expect increased volatility in USD and stock indices.

US Stock Market: Following the highly volatile session in the US, the indices closed again at record levels, reflecting new details in Trump's tax reform plan and Jerome Powell's new appointment as Federal Reserve Chairman. Dow Jones climbed 80 points, closing at $23,516. The key driver of the boom was Boeing's shares, which rose 1.63 percent. The company is greatly favored by Trump's policy and the military deals the president made earlier this year. The SP500 was able to erase the losses accumulated during the day by closing at a record level with a 0.02% increase over yesterday. NASDAQ posted a strong positive news on the 12% tax on profits made abroad, which the big tech companies are expected to return to the US Index rose 0.11% to $6714.94.

After the end of the session, Apple presented the financial results for Q3 in 2017, and managed to keep all expectations on Wall Street. Apple Inc. managed to realize EPS of $2.07, compared to the expected $1.87. The company's revenue amounted to $ 52.6 billion. compared to expected $50.7 billion.

Economic calendar for European and US trading sessions
11:30 UK - Services PMI
14:30 USA - Non Farm Payrolls
14:30 USA - Average hourly wage
14:30 USA - Trade Balance
14:30 USA - Unemployment Rate
14:30 Canada - Unemployment rate
14:30 Canada - Trade Balance
16:00 USA - Manufacturing PMI

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