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- Varchev Finance: Trading day in one post – 04.04.2018
Varchev Finance: Trading day in one post - 04.04.2018
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Loading...Asian Stock Market - Asian markets are trading in mixed moods, reflecting Wall Street growth on the one hand and the effect of import tariffs imposed on China on the other. In Japan, Nikkei 225 declined by 0.1% and Topix wiped 0.13%. Asia's technology sector continues to struggle, Kospi declined by 0.13%, mainly due to Samsung shares, which wiped out 0.96%. Chinese companies were on the rise, with Hang Seng rising by 0.27% and Shanghai composite by 0.64%. During the Asian session, we did not witness events that could affect Europe or later in the United States.
FX Market - In short risk appetite is back. NZD and AUD mark an increase despite weaker economic data from China. The Dollar Index is traded unchanged at the top of the consolidation movement, while traders are waiting for a fundamental reason that will turn moods to positive and will finally break the negative series. Today we expect inflation data in the Eurozone as of 12:00, and from 15:15 ADP data for Non Farm Payrolls. News has a strong influence on national currencies, and today we can expect strong volatility at EUR/USD. Investors will look forward to inflation data and if it turns out to be weaker than the 1.4% expected, the Sell button will be the most appropriate opportunity for a trade between 12:00 and 15:15. ADP NFP expectations are 205K compared to 235K in February. The consensus forecast for the official data we expect on Friday is even worse, 198K versus 313K in February. It looks like the dollar will be under pressure again and the indexes will look for direction. We will probably not see a significant rise in USD, and many market participants will be disappointed again.
Commodity market - Oil continues to decline, despite positive API oil inventories. Impairment is the result of the growing production in the Peruvian basin, which fills the last available storage space. This forces the producers to pay higher prices for storage in alternative tanks, while lowering the cost of the raw material. The rising stock market and at the same time the US dollar led to a rise in gold. Overall, there is an increased risk of appetite and escape from havens, such as CHF, JPY and GOLD.
European stock market - Europe will definitely not follow the US. Even with the opening of the European markets we will see gaps in the downward direction. DAX30 will start trading 34 points lower at a price of €12024. The French benchmark CAC40 is expected to start 20 points lower at a price of €5154. UKX will also continue the losing streak, marking a gaff of approximately 20 points at 7024 pounds. Technically, European indices are officially downward trend. For all three benchmarks, lower bottoms are seen, such as crossing 50 and 200 from top to bottom, and keeping the price below them. It seems that the trade war will have a strong influence on the old continent, and any upward adjustment will be used for trend additions.
US Stock Market - 200 SMA manages to hold the US indexes once again, but one thing is fact - this time we have not witnessed a strong rebound in the upward direction. The lack of strong Price Action, close to such a significant level, is a bull slimming signal compared to the previous average tests. The reason for the retention of indices above the key level was the technology companies that recovered after the downsides in recent days. We must not miss out on the rise in the dollar, which also contributed to the harder recovery of the indices. In general, the US stock market was quite confused, and to assess market sentiment, it is good to look at the third point of view - Safe Haven tools. CHF, JPY and Gold are downsizing, which suggests that stock market negativity is beginning to weaken. VIX remained above the average, marking a decrease of -10.67%.
Economic calendar for European and US trade sessions - 04.04.2018
11:30 UK - Construction PMI
12:00 Eurozone - CPI
15:15 USA - ADP Non Farm Payrolls
16:45 USA - Services PMI
17:00 USA - ISM Production PMI
17:30 US - Crude Oil Inventories
Trader Petar Milanov Read more:
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