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- Varchev Finance – Trading day in one post – 06.12.2017
Varchev Finance - Trading day in one post - 06.12.2017
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Loading...Asian stock market: Asia markets mostly fell across the board on Wednesday, following overnight declines in U.S. stocks. The S&P 500 posted its first three-day losing streak since August. Australia's ASX 200 declined by 0.42 percent as the materials and energy sectors fell 1.54 percent and 1.52 percent, respectively. Major miners were all lower: Shares of Rio Tinto fell 2.34 percent, Fortescue Metal was down 1.4 percent and BHP lost 1.87 percent. Junior miners also fell, with South32 shares sliding 4.14 percent. Japan's Nikkei 225 declined 1.59 percent while the Topix index was down 1.2 percent. Across the Korean Strait, the Kospi slipped 0.61 percent. In Hong Kong, the Hang Seng index traded down 1.27 percent. Chinese mainland markets were also lower, with the Shanghai composite down 0.6 percent and the Shenzhen composite off by 0.27 percent. Shares of Samsung Heavy Industries plunged as much as 28 percent as of 11:55 a.m. HK/SIN. The company had said it was planning a 1.5 trillion Korean won ($1.38 billion) rights offering by May 2018, according to Reuters. The rights issue was aimed at improving the company's financial structure and to allocate new shares to existing shareholders, the wire service reported.
Currency market: The Bloomberg Dollar Spot index was little changed. The Aussie dollar declined 0.3% to 75.86 U.S. cents. The yen rose 0.3% to 112.25 per dollar. The euro was little changed at $1.1830. The pound remained lower, decreasing 0.1% to $1.3431 after 0.3% drop on Tuesday. The main reason for this is another failure of the UK Prime Minister in the Brexit talks. After reaching a consensus on the "bill" for separation, the remaining key issues concern the border with Ireland and the civil rights of the locals in the UK. Yesterday, at May's meeting with the EU Commissioner, no progress has been made, and for many the last date for progress was 04.12. These news hammered the pound, wiping out the full raise of last week. For the rest of the trading days we expect the moods over GBP to remain negative, with every positive news for Brexit being welcome. As the greenback heads for its worst year in more than a decade, bearish projections are piling up for 2018. With global “growth becoming more balanced and more synchronized, the dollar looks expensive,” Kit Juckes, fixed-income strategist at Societe Generale SA, wrote in a report Tuesday. While he projects the benchmark U.S. Dollar Index will drop 4.5 percent by the end of 2018, TD Securities Inc. currency strategist Ned Rumpeltin sees an even bigger depreciation to 87.8. Bitcoin broke above the $12,000 mark Wednesday morning Asia-time, as the cryptocurrency continued its march higher. As of 11:33 a.m. SIN/HK, the digital token was selling for $12,198.57, according to industry site CoinDesk. The asset began 2017 at less than $1,000 per token, but it has been on an absolute tear in recent months: It crossed $5,000 in October and touched above $11,000 for the first time less than two months later, according to CoinDesk data.
With Wednesday morning's spike, the cryptocurrency now has a total market value of about $203 billion — more than twice Goldman Sachs' market cap. All of the digital asset's explosive growth has come against a backdrop of steady criticism from many financial luminaries. For one, Stephen Roach, Yale University senior fellow and the former Asia chairman and chief economist at investment bank Morgan Stanley, told CNBC on Tuesday that he was deeply skeptical of investing in bitcoin. "This is a toxic concept for investors," Roach, described by Yale as one of Wall Street's most influential economists, told CNBC. "This is a dangerous speculative bubble by any shadow or stretch of the imagination." "I've never seen a chart of a security where the price really has a vertical pattern to it. And bitcoin is the most vertical of any pattern I've ever seen in my career," he added. Yet many elements of the financial world have embraced the new crypto asset class: Major exchanges like the CME and CBOE have legitimized the currency's investment credentials by saying they plan to introduce futures contracts to their respective exchanges.
Commodity market: West Texas Intermediate crude fell 0.4% to $57.38 a barrel. Gold was at $1,265.93 an ounce, near the lowest since August, after falling 0.8%. Copper futures were up 0.5% after plunging 4.7%, the most since January 2015.
European stock market: The negative sentiments of the Asian and US Session will spread across Europe today, where major stock indices will start trading in red territory. The German DAX will open 35 points down around 12,968. The French CAC is 5,345 - 15 points lower than the closing on Tuesday. The FTSE 100 will also open with a minus 22 points. Today, investors in Germany will be interested in tracking data on factory orders in the country. As a country highly oriented towards production, better values here would give the necessary support to the index, and it could return to positive territory. In the UK, another failure in the Brexit talks makes the picture unclear, with many unknowns before the investors - what will be the decision about the physical border with Ireland, and what the future of citizens in the UK after March 2019 - these are the two main issues, whose answers will determine the short-term trend of the index.
U.S. stock market: U.S. equities closed lower on Tuesday as a gain in tech stocks failed to lift the broader market higher. The S&P 500 declined 0.4 percent to 2,629.57, with telecommunications, industrials and utilities lagging. The index posted its first three-day losing streak since August.
The information technology sector closed 0.2 percent higher and was the only advancing sector. Facebook, Netflix and Google-parent Alphabet all closed higher. The Dow Jones industrial average finished 109.41 points lower at 24,180.64. The Nasdaq composite erased earlier gains, slipping 0.2 percent to 6,762.21. The index also notched a three-day losing streak. "We saw some short covering in tech earlier in the session. That cover is fading," said Dave Lutz, head of ETF trading at JonesTrading. He also noted that commodities, specifically metals, are down broadly on Tuesday. Tech — the best-performing sector this year — has taken a hit recently, sliding about 4 percent over the past week, as investors digest a major tax bill passed by Senate members.
Economic calendar for the European and U.S. trading sessions:
09:00 Germany - Factory Orders
15:15 USA - ADP Nonfarm Employment Change
17:00 Canada - BoC Interest Rate Decision
17:30 USA - Crude Oil Inventories
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