Varchev Finance: Trading day in one post - 11.01.2018

Asian stock market: Most major Asian indexes declined on Thursday following the softer lead from Wall Street. Investors in the region also focused on quarterly releases as Japanese corporates kicked off earnings season. The Nikkei 225 declined 0.43 percent, with major exporters, including automakers and technology names, trading lower: Toyota fell 1.08 percent, Honda lost 2.15 percent and Canon shed 0.42 percent. Many investors in the region also awaited corporate earnings due later in the day. Uniqlo owner Fast Retailing, the most heavily weighted stock on the Nikkei 225, is due to report earnings for the quarter ending November on Thursday. Shares of the company reversed early gains to trader lower by 0.28 percent. Over in Seoul, the Kospi edged lower by 0.48 percent. Chipmakers, which had weighed on the index in the last session, were mostly lower on Thursday. Samsung Electronics was off by 0.86 percent and SK Hynix shed 0.14 percent. In Sydney, the benchmark S&P/ASX 200 shed 0.56 percent — with most sectors except gold producers edging lower on the day. Greater China markets traded mixed in the early going. Hong Kong's Hang Seng Index slipped 0.18 percent, snapping a 12-day win streak. Despite the move lower, the Hang Seng Index, the region's top-performing major last year, continued to hold above the 31,000 level. Mainland markets were slightly lower, with the Shanghai composite edging down 0.15 percent and the Shenzhen composite off by 0.1 percent.

FX market: The yen traded at 111.62 per dollar after rising 1.1% Wednesday. The Bloomberg Dollar Spot Index was flat following its 0.2% drop Tuesday. The loonie nudged lower to $1.25534 after sinking 0.7% in the previous session. The euro rose 0.1% to $1.1964. The Australian dollar got a boost after data released earlier showed November retail sales rose more than expected. The currency traded at $0.7868 at 11:57 a.m. HK/SIN, which compared to levels around the $0.783 handle seen before the release. Canada increasingly convinced Pres. Trump will shortly announce US pull out of NAFTA USDCAD moves higher on the news. Canada plans to stay at negotiating table even if Trump says he is polling US out of NAFTA has some talks would continue. Trump notice of withdrawal would be significant but US-Canada trade would continue. The USDCAD is moving higher on the news. It trades above 1.2545.

Commodity market: A shortage of palladium has seen prices skyrocketing to near 2001 records and led to a decline in physical holdings in exchange-traded funds backed by the precious metal, used to clean exhaust fumes from engines in gasoline-powered vehicles. Palladium jumped 56 percent last year, making it one of the best performing commodities, while ETF holdings posted a third annual decline. ETF outflows are probably going to meet this deficit and satisfy industrial consumers, said Robin Bhar, a London-based metals analyst at Societe Generale SA. Investors are also liquidating holdings to take profits, he said. Gold futures rose 0.1% to $1,318.29 an ounce. WTI crude was flat at $63.58 a barrel, trading near the highest in more than two years.

European stock market: Despite the negative sentiment from Asia and the US, the major European indices are expected to open in positive territory. The German DAX will start the session with a 32-point price increase of 13,295; The French CAC will also generate profits, opening at 5.504 - 9 points, and the FTSE 100 will start trading with 15 points up. Investors remain cautious because of rumors that China is considering reducing or stopping its purchases of US Treasury bonds and trying to assess how this will affect the bloc's markets. One day remains until the results of Merkel's latest attempt to form a coalition in Germany. Any news from this topic will immediately affect the DAX index.

U.S. stock market: Stocks fell on Wednesday as investors fretted over the possibility of China halting its Treasury bond purchases and the U.S. pulling out of NAFTA. The Dow Jones industrial average traded 32 points lower. The index had fallen 128 points at its session lows. The S&P 500 declined 0.2 percent. Utilities and real estate were the worst-performing sectors on the index. The Nasdaq composite traded 0.3 percent lower. Bloomberg News reported Wednesday, citing people familiar with the matter, that officials in Beijing have recommended the Chinese government lowers — or even stops — its buying of U.S. sovereign debt. The report also notes that Chinese officials think U.S. debt is becoming less attractive compared to other assets, adding that trade tensions between the two countries could provide a reason to slow down or halt the purchases.

Economic calendar for the European and U.S. trading sessions:
12:00 Europe - Industrial Production
14:30 Europe - ECB Publishes Account of Monetary Policy Meeting
15:30 USA - Initial Jobless Claims
15:30 USA - PPI
15:30 Canada - New Housing Price Index
16:45 USA - Bloomberg Consumer Confidence
21:00 USA - Federal Budget Balance
22:30 USA - FOMC Member Dudley Speaks

Read more:

• Varchev Finance: Trading day in one post – 19.09.2018
• Varchev Finance: Trading day in one post – 18.09.2018
• Varchev Finance: Trading day in one post – 17.09.2018
• Varchev Finance: Trading day in one post – 14.09.2018
• Varchev Finance: Trading Day in One Post – 12.09.2018