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- Varchev Finance: Trading day in one post – 05.04.2018
Varchev Finance: Trading day in one post - 05.04.2018
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Loading...Asian Stock Market - Wall Street's rise since yesterday has revived Asian markets as well. In Japan, Nikkei 225 jumped by nearly 2%, and technology companies in South Korea sent Kospi 1.35% higher. ASX200 rose 0.61%, mainly due to the financial sector, which pulled 1.15% against yesterday. The markets in China and Hong Kong remained closed.
FX Market - The currency market remains relatively calm at the moment as JPY continues to be the focus of attention. Stock growth makes investors run away from havens, and among the currencies, the yen is the loser of all. CHF traded slightly downwards from 0.04%. GBP and EUR remain static, hours before service sector data. Expectations are that the data will go unchanged in the euro area and with a slight decrease in the UK, a differential that we would use for short-term positioning in favor of the euro. We expect the US trade balance data. The data will be monitored with particular attention against the background of the whole noise Tramp raises around the country's trade deficit. I expect the data to have a direct impact on the indices as they will be overexposed from the White House perspective. CAD continues to prevail over major currencies while we expect the balance of trade data from 15:30 today. Like in the US, data will be vigorously monitored by investors in view of the upcoming NAFTA negotiations.
Commodity market - The oil managed to stabilize against the backdrop of positive oil stock data. However, a new peak remains unlikely, given record yields. Pressures come as a result of the growing US production that 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. GOLD - The downward momentum remains as the USD stays static, suggesting that the indexes have probably found their bottom.
European Stock Market - Positivism will also cover the old continent. German benchmark futures signaled a strong start to the European session - nearly 100 points higher than yesterday at a price of about € 12,148. The French CAC40 will open with a gaunt of 26 points at a price of € 5213. UKX will open the most modestly, with a change of only 13 points at a price of 7132 pounds. Today, during the European Stock Exchange, we expect the PMI data on services from both the eurozone and the UK. Expectations are that the data will come out without a change in the euro area and a slight decrease in the UK. This would have an impact on the local currencies, and hence the indices, despite the positivities of the markets that are being observed.
US Stock Markets - US stocks have managed to cover much of the losses accumulated mainly because of the tensions surrounding the war that seems to be delaying ... at least for now. To date, investors have accumulated the worst case scenario, and if we have to be objective, the rupture in the US-China relationship seemed inevitable. The SP500 marked its strongest increase over the last five weeks, as representatives of China and the Trump administration left the door open for a decision to avoid tariff proposals. In fact, that was clear at the time of the announcement of Trump's tariffs. What is more important at the moment the markets appreciate is the fact that tariffs will not come into effect in the coming months. With the high volatility we have seen in recent weeks, everyone is looking for the "best" entry price of the indices. It looks like the SP500 found its support in the area around $ 2550 and $ 2600. In addition to the technique, we expect the financial reporting season, which is expected again with record highs. If this is true, we will probably not see a new Low on the indexes. On Friday we expect NFP data to show how the US labor market is moving. Expectations are slightly lower compared to the previous one, which will open a good opportunity for purchases with better data.
Economic Calendar for the European and US Trade Session 05.04.2018
09:00 Germany - Industrial orders
10:15 Switzerland - CPI
10:55 Germany - Services PMI
11:00 Eurozone - Services PMI
11:30 UK - Services PMI
12:00 Eurozone - Retail Sales
15:30 US - Jobless claims
15:30 US - Trade Balance
15:30 Canada - Trade Balance
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