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- Varchev Finance – Trading day in one post 07.06.2018
Varchev Finance - Trading day in one post 07.06.2018
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Loading...Asian stock market: Asian shares rose Thursday, with markets in Japan and South Korea notching convincing gains in morning trade. That followed moves higher on Wall Street in the last session, which saw the Dow Jones industrial average close above 25,000. The Nikkei 225 advanced 0.83 percent in morning trade as banking and other financial sector stocks advanced. Automakers were also broadly higher as the yen continued to trade at the 110 handle to the dollar. South Korean stocks saw similar gains, with the benchmark Kospi up 0.72 percent. Banks and steelmakers climbed, with Posco rising 3.26 percent, but gains were capped by declines in the technology sector. Index heavyweight Samsung Electronics slipped 0.78 percent, lagging the broader index. Australia's S&P/ASX 200 edged up by 0.68 percent. Mining majors like Rio Tinto and BHP extended the last session's gains, adding 2.08 percent and 2.04 percent, respectively. Utilities, however, traded lower.
FX market: The euro continues to be supported by traders after ECB member Peter Praet said eurozone inflation was improving and this is in support of the ECB's tightening of monetary policy plans. The signals showing that inflation is approaching our goal are improving and support our confidence that inflation will reach a level close to 2% over the medium term. Wage growth is a major driver of this better prospect and further supports the intentions of the next ECB meeting to specify a date for the termination of QE. Technical EUR/USD forms an inverted H & S in a strong support area. The price penetrates the short-term downward channel and activates the figure. There is also a false breakthrough on a major horizon that forms the head of the formation. In addition, the Sequential counts 5 on top - the impulse is at an intermediate stage of development. DeMarker buys a purchase alert.
Commodities market: The gold market is stuck. A measure of 30-day volatility in bullion futures slid to the lowest in four months amid a tug-of-war between rising interest rates and a stronger dollar on the one hand and demand for haven assets on the other. “Gold prices have faced combating indicators, with a strengthening dollar being bearish for gold and global geopolitical risks bullish, making it difficult for bullion to move out of its current range,” said John Meyer, an analyst at SP Angel.
European stock market: European markets will open today without significant changes, as traders are awaiting gross domestic product data in the eurozone. Apart from this report, there are no other key economic news so markets will be driven again by "political developments" - Donald Trump, trade speculation, Italy, Spain, and so on. What is worrying at first glance is the fact that, in general, after a strong session on Wall Street and in Asia, Europe opens up strongly. Today this is not the case. Whether the fact is due to the news that the ECB may soon end QE or the reason lies in the trade relationship with the US is yet to be understood.
U.S. stock market: Another day, another record intraday high for the Nasdaq and the Technology Select Sector SPDR Fund ETF (XLK). U.S. tech stocks may be overbought on a 14-day RSI basis but that doesn't mean the party is over if the days of falling volatility are back. There are instances in which the tech ETF was able to rally after an overbought RSI, i.e. a reading over 70. During a period in October and November 2017 when the RSI hit 84, the XLK managed to rise 1.4% in November even with a decline at the start of the month. A 6% gain followed an overbought RSI that concluded in mid-May. The XLK's overbought RSI in January did come right before the market implosion. But the short-vol trade has faded and, as Andrew Cinko points out, a lower put-call volume ratio suggest a lack of fear amid falling volatility and record Nasdaq highs. While tech may take a break soon, further records may be on the horizon. One common way to use the Relative Strength Index is to short the overbought security when the RSI falls back below 70 from an overbought reading, though that happens to be the worst-performing strategy for the XLK this year based on Bloomberg's back-testing function.
Economic calendar for the European and U.S. trading sessions:
09:00 Germany - Factory Orders
10:30 UK - Halifax House Price Index
12:00 Europe - Gross Domestic Product
15:30 USA - Initial Jobless Claims
17:30 Canada - BoC Financial System Review
18:15 Canada - BoC Gov Poloz Speaks
Trader Aleksandar Kumanov Read more:
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