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- Varchev Finance: Trading day in one post – 09.03.2018
Varchev Finance: Trading day in one post - 09.03.2018
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Loading...Asian Stock Market - Asian stocks rose, mainly due to Trump's agreement to meet Kim Chen Wu and to negotiate demilitarization of North Korea. An additional catalyst for the markets was the opportunity given by the White House to the countries affected by the tariffs introduced to negotiate with the state administration. Nikkei rose 2.32%, while South Korean Kospi scored 1.66%. Hang Seng rose 0.9 percent, while continental markets posted more moderate profits. Shanghai composite rose 0.29% and Shenzhen added 0.27%. ASX200 jumped 0.55%.
FX market: Dollar index managed to stabilize after the White House decision to give the countries affected by the high tariffs a chance to negotiate with the state administration. An additional boost for the green currency was Trump's agreement to meet Kim Chen Un, and to negotiate the demilitarization of the Communist Party. EUR continues to lose positions due to cautious comments from the ECB. The bank commented that they are willing to increase the level of bond purchases by size and duration if the eurozone's economic outlook deteriorates. JPY posted the largest decrease of -0.42% taking into account the stabilizing geopolitical situation. What will move the FX market today are data on new jobs in the US and average hourly wages. Earlier this week, ADP showed better data than expected and, to a large extent, better data has already been accumulated by the dollar. The consensus forecast is 200,000 new jobs, with better data leading to a rise in the dollar and worse to a drop.
Commodities market: West Texas Intermediate crude earned 0.12% to $ 60.29 a barrel after dropping 2% on the previous day. Gold fell 0.26% to $ 1,318 per ounce, as trade war concerns tumbled down, and Trump called for Kim Chung Un to face-to-face negotiations. Copper's price reached a 7-year peak in 2017, with market expectations for a further rise in the price of the metal. The reason for this is that electric car makers, phone makers and computer chips are exerting pressure on Copper-producing companies to offer more. By 2025. the demand for Copper will be 3 times higher than in 2020. this growth is expected to continue until 2030. These incredible growth rates for Copper industries raise concerns that the supply of the metal will be insufficient and this will lead to a price increase. Currently, industrial metals are as nervous as the FX and the Stock Markets, weighing a high probability of a trade war between the two largest economies in the world and not only. The downgrading of copper in the last days is more of a technical significance than a fundamental one. In the long run, both the trend and the foundation remain for the rise of the metal, but if we see a break in the main upward trend (outlined by the yellow line), this could be a very significant signal for the global economy. Continued retention of copper under the mainstream trend will also lead to a significant increase in gold gaps, as a fall in copper leads to uncertainty in the markets, and that will surely raise gold.
European stock market - Despite Wall Street rallies, futures on European indices indicate a negative start. The German DAX30 is expected to start the session by about 6 points lower at a price of € 12 340. The French CAC40 will start trading downward by 5 points at a price of about € 5245. UKX will start trading without change. We expect European markets to trade cautiously on the last day of the week pending labor market data in the United States. Today, investors will also look for details about Trump's intention to meet with Kim Chen Un, as those that specify different aspects of the relationship between countries would move the markets.
Wall Street Market - Wall Street reacts with the rise of US President Donald Trump's words on the mitigation of the customs policy on imports of steel and aluminum. Dow Jones rose 0.38 percent to 24,895. For the S & P 500, the increase today is from 0.45% to 2738 points, while the Nasdaq finished 0.42 percent up to 7,427 points. "The main focus of investors is on duties," said Peter Cardio of First Standard Financial. Markets are excited by their economic impact, the analyst said before the agency. Investors continue to assess the possible implications of President Trump's plans for duty. Customs duties on imports of steel and aluminum will be at the originally proposed levels of 25% and 10% respectively, but the US president commented that these levels may vary - upwards or downwards - for individual countries. Trump hinted at possible exclusion from the measure for Canada and Mexico.
Economic calendar for European and US trade session - 09.03.2018
09:00 Germany - Industrial production
11:30 UK - Trade Balance
11:30 UK - Industrial Production
15:30 USA - Non Farm Payrolls
15:30 USA - Average hourly wage
15:30 USA - Unemployment rate
15:30 Canada - Unemployment Rate
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