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- Varchev Finance: Trading day in one post – 05.09.2018
Varchev Finance: Trading day in one post - 05.09.2018
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Loading...Asian Stock Market - Asia markets were largely negative in morning action after Wall Street posted losses on its first trading day of the month, and as emerging markets sold off overnight. Japan's Nikkei 225 traded down by 0.26 percent in the morning, with the real estate sector seeing a loss of 1.76 percent. South Korea's Kospi was also trading lower by 0.15 percent, with industry heavyweight Samsung Electronics falling by 1.15 percent. In Australia, the ASX 200 continued the downward trend by sliding 0.76 percent lower in the morning. Over in the Greater China region, Hong Kong's Hang Seng index fell around 1 percent in early trade. The Shanghai composite was also lower by 0.45 percent and the Shenzhen composite was down by about 0.47 percent.
FX Market: The Bank of Canada is widely expected to keep its benchmark interest rate on hold at a policy announcement on Wednesday, in part to allow more time to see how last-ditch efforts to include Canada in a new North American Free Trade Agreement unfold. Economists from nine of 11 primary dealers of Canadian government securities told The Wall Street Journal they expect the Bank of Canada to keep the target for the overnight rate unchanged this week at 1.50%. A majority of those surveyed said the central bank would likely wait until October to raise its key rate. Although headline inflation came in well above expectations in July, at a near seven-year high of 3%, the central bank’s preferred measures for core inflation held steady at around 2%. The Canadian economy expanded 2.9% in the second quarter, roughly in line with the Bank of Canada’s most recent forecast. Nafta is crucial for Canada, which sends about three-quarters of its exports to the U.S., accounting for roughly one-fifth of the country’s gross domestic product. A Bank for International Settlements report last week estimated that a complete revocation of Nafta could cause a 2.2% decline in Canada’s gross domestic product—by far the biggest hit among the three Nafta countries.
Commodities market: Oil prices will probably not exceed $70 a barrel, Oman oil minister said, adding that he considers prices to be fair. "I think that for the rest of this year, prices will stabilize around $70 a barrel," said Mohammed bin Hamad Al Rumhy. As for OPEC +, the agreement continues to work to stabilize markets, with prices currently around the average expected value of $70, although the US is criticizing rising prices. Prices are also supported by the US decision to re-sanction the main oil producer from OPEC Iran, which will stifle the oil industry and restrict supply, which may lead to price increases.
European stock market: European markets are expected to launch the session in red territory, following the example of their colleagues from Asia and the United States. Due to the lack of important economic news during the first hours of trade, the focus will be on the US-hungry president, Donald Trump, as well as the resumption of talks on the integration of Canada into the new Nafta agreement.
U.S. stock market: It's official: Amazon is the second US company to achieve a valuation of more than $1 trillion. Shares of the e-commerce giant gained about 2% in trading on Tuesday to hit an all-time high of $2,050.27. Multiplied by the number of shares outstanding (487,741,189), that puts the company's book value just over the same symbolic milestone that Apple hit less than one month ago. One trillion is a difficult number to imagine, regardless of what's being counted, and even less so when it's the value of a 24-year-old company with a plethora of business units in addition to its core retail focus. For context, the entire US stock market — the sum of all publicly traded American companies, including Amazon — hit $30 trillion in January. Even more telling is Amazon's size when compared with the entire national stock markets of other countries. Its book value is greater than that of every stock market in all but 13 countries — even greater than those of Taiwan, Spain, and Italy — according to figures from the CIA's World Factbook (though several estimates are from 2015 or earlier). For fiscal 2017, Amazon and its 560,000 employees around the world reported total sales of $177.87 billion, netting it an adjusted profit of $6.15 per share, according to the company's annual report.
Economic calendar for the European and U.S. trading sessions:
10:55 Germany - Services PMI
11:30 UK - Services PMI
15:30 USA - Imports/Exports
15:30 USA - Trade Balance
15:30 Canada - Trade Balance
17:00 Canada -BoC Interest Rate Decision
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