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- Varchev Finance: Trading day in one post 07.12.2017
Varchev Finance: Trading day in one post 07.12.2017
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Loading...Asian Stock Market: Asian indices report an increase. Japan's Nikkei has a 1.27% increase as the sectors that contributed most to the rise in the index are the financial, technology and automotive sectors. Australian ASX rose 0.57%. The "Big Four" Banks in Australia have recorded record profits. ANZ rose by 0.78% and Westpac by 1.34%. Chinese markets on the other hand trade in mixed moods. Hang Seng was 0.48% green, while Shanghai composite and Shenzhen composite fell 0.25% and 0.19%.
Forex market: USD remains stable after better data from ADP. The US currency is at the key level of 1.1800 versus EUR. Break below this level may lead to a downward momentum for the pair. Since Trump's tax reform is now a fact, we need to understand just how it will affect the greenback. For the moment there are no significant moves, but we still have to take into account that the dollar keeps its position and even rises against its main competitors. The dollar index is at 93.50, a break above 94.00 is positive for the dollar. CAD: Stays under pressure after BoC left the interest rate unchanged.The Canadian dollar has been experiencing difficulties in recent weeks, mainly because of the declining oil price. We also need to take into account that economic data from Canada is not very encouraging, which puts a further rise in interest rates in question. For now, we remain a negative mood for CAD. EUR: The common currency remains fairly stable. Although there is not yet a coalition government in Germany, and if it is not known whether it will ever exist, the EUR behaves well on the market. Today we expect GDP data for the third quarter of the euro area. Better data than expected will support EUR.
Commodities market: OIL has managed to return some of its losses through the Asian Hours. Brent traded a 0.33% increase at $ 61.42 a barrel, while WTI gained 0.27% at $ 56.11 a barrel. After OPEC and major oil exporters extended their deal to cut oil, everyone was expecting the price of black gold to spike. But that .. it did not happen. The reason is that while OPEC cuts its production, shale producers in the US and Canada are increasing theirs. While the price of oil is kept at $ 55 a barrel, shale makers will work on profits and plunge the market with their commodity.GOLD: remains under pressure. Over the last few weeks, precious metal has wander in consolidation between $ 1260-1300. We do not have a breakthrough at any of these levels yet. We have to note that the metal price is currently down to the bottom of the channel around 1265$. Break below these levels can trigger a strong downward impulse.
Cryptomarket: In less than 24 hours Bitcoin has reached from $12,000 to $14,000. Cryptobenchmark is among the best-performing assets this year, with an increase of over 1100%. Following the news that CME will release BTC futures on December 11 2017, and Nasdaq will list BTC at the end of the second quarter of 2018, the crypto literally exploded and reached highs one after another. For the time being, we remain positive towards the BTC.
European stock market: European indices will open up with positive territory following Asian benchmarks. The German DAX has a 25 point increase in price around 13025, the French CAC with a 10 point increase of around 5380 and the UKX UK with a 20 point increase of around 7355. Today, we expect a statement by Mario Draghi on monetary policy of the Union and these are the news that wait for investors to know how to proceed with their investments in Europe.
American Stock Market: It seems like the way for US indices is already free for new and new peaks. Following Trump's tax reform, financial institutions must generate massive profits. But for the time being, the US indices remain below their tops. We think this will change soon. Now the NAFTA talks are on the agenda, where the trade relationship between the US, Canada and Mexico will be reviewed.
Economic calendar for the European and American trade sessions 12.07.2017
8:45 Switzerland - Unemployment rate
9:00 Germany - Industrial production
10:30 UK - Halifax house price index
12:00 EU - GDP
15:30 USA - Initial jobless claims
15:30 Canada - Building permits
17:00 Canada - Ivey PMI
18:00 EU - ECB President Draghi speaks
22:00 USA - Consumer credit
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