- Home
- >
- Fundamental Analysis
- >
- Varchev Finance: Trading day in one post 11.12.2017
Varchev Finance: Trading day in one post 11.12.2017
Rating:
Loading...Asian Stock Market: Asian stock indices are trading with increases. The Japanese Nikkei has a 0.27% increase, Kospi with 0.09%. The Australian ASX did not stay behind and accounted for a 0.11% increase, with the energy and commodity sector contributing most to the rise in the index. Chinese markets are also traded on green territory. Shanghai composite and Shenzhen composite are 0.4% and 0.93% up.
Currency market: USD remains stable. The dollar index touched levels of 93,821 as last week was at levels around 93.30. Soon we expect speculation about interest rate rises in 2018 to affect the strength of the US currency. For now, the market has traded 3 increases, but many analysts believe we will see more. This will certainly have a positive impact on the USD. We must carefully monitor the US economic news. We look forward to seeing the CPI change (the main measure of inflation) as better data than expected will push the bulls of the dollar. On Thursday, we expect the Fed's interest rate decision. For now, expectations are over 90% that there will be an increase. Investor focus will be on the FOMC report with the economic outlook for 2018. NZD: performed well in the early Asian hours after the New Zealand central bank announced that it had a new appointed president. However, the increasing may be short-lived. Although investors prefer risky instruments, the interest rate in New Zealand is 1.75%, and if the FED raises the interest rate at the upcoming meeting, it will be 1.5%. The difference is too small for investors and they prefer to invest in USD or instruments directly correlated with the dollar than in the NZD. CAD failed to break below Double Top and returned to test resistance at levels around 1.2930. Currently the sentiment around the Canadian currency, is rather negative. Economic data from the country are too heterogeneous and the market can not accurately assess where the economy is going. For the time being, only one interest rate increase is expected in 2018.
Commodities marker: GOLD is trading below the $ 1,500 psychological level and below the main diagonal resistance. Moods on precious metal remain negative as investors move to more risky instruments. Expectations for an FED interest rate rise at the upcoming Central Bank meeting, as well as speculation that in 2018 there will be at least 3 interest rises, are affecting gold negatively. For the moment, we remain negative to GOLD. OIL traded with decline in the first day of the week. Brent declined 0.49% to $63.09 a barrel, while WTI declined by 0.52% to $57.06 a barrel. Although OPEC extended its oil reduction agreement, the shortage that they created was quickly filled from the shale oil producers: Canada and the United States. The petroleum sentiment for the moment remains rather positive, but if the price continues to rise, we will see the additional capacities from shale makers, which will ultimately unbalance the market.
Cryptomarket: Today is the day when Bitcoin's futures are listed with CBOE. The Benchmark rose steadily from $ 15,460 to $ 16,587, according to CoinDesk. The listing of BTC on the Chicago Stock Exchange means that large institutional investors will be able to speculate with the most traded instrument for 2017. However, we must not forget that futures are cash, which means that Bitcoins does not actually transfer from one owner to another, speculation is only with the price of the asset.
European stock market: European indices will start the week positively. The German DAX will open an increase of around 25 points to about 13,185 euros. The French CAC with 5 points raised to 5415 and the British UKX with a 20 points raise of 7423 pounds. This week we are expecting Mario Draghi's statement where we will look for guidance on what the central bank policy will be, what are the expectations for 2018 and when we can expect rising interest rates.
US Stock Exchange: We expect the US indices to continue to rise. The uncertainty of tax reform is no longer up to date after it was approved by the Senate. Now the other danger is the outcome of the German coalition negotiations. If they fail again, we can see that the worries of Europe will very quickly shift to the United States. Another factor that can positively influence the indices is the Santa's rally.
Economic calendar for the European and American trade sessions 11.12.2017
17:00 USA - JOLT's job openings
17:00 USA - CB Employment trends index
US Equity Upgrades
AK STEEL (AKS) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
BROWN-FORMAN (BF.B) UPGRADED TO HOLD FROM SELL AT SOCIETE GENERALE
COMMERCIAL METALS (CMC) UPGRADED TO BUY FROM NEUTRAL AT BOFA/MERRILL
DAVITA (DVA) UPGRADED TO STRONG BUY FROM OUTPERFORM AT RAYMOND JAMES
HYATT (H) UPGRADED TO BUY FROM NEUTRAL AT MKM PARTNERS
LAM RESEARCH (LRCX) UPGRADED TO BUY FROM NEUTRAL AT NOMURA INSTINET
LULULEMON (LULU) UPGRADED TO HOLD FROM SELL AT CANACCORD
NAVIGATORS (NAVG) UPGRADED TO BUY FROM HOLD AT SANDLER O'NEILL
SEACHANGE (SEAC) UPGRADED TO BUY FROM HOLD AT LAKE STREET
SHAKE SHACK (SHAK) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT MORGAN STANLEY
US Equity Downgrades
ARGAN (AGX) DOWNGRADED TO HOLD FROM BUY AT LAKE STREET
BILL BARRETT (BBG) DOWNGRADED TO IN-LINE FROM OUTPERFORM AT IMPERIAL CAPITAL
BROWN-FORMAN (BF.B) DOWNGRADED TO HOLD FROM BUY AT PIVOTAL RESEARCH
CTRIP.COM (CTRP) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
EXPEDIA (EXPE) DOWNGRADED TO NEUTRAL FROM BUY AT MKM PARTNERS
PRICELINE (PCLN) DOWNGRADED TO NEUTRAL FROM BUY AT MKM PARTNERS
RPC, INC. (RES) DOWNGRADED TO IN LINE FROM OUTPERFORM AT EVERCORE ISI
SECUREWORKS (SCWX) DOWNGRADED TO NEUTRAL FROM OVERWEIGHT AT JPMORGAN
TOLL BROTHERS (TOL) DOWNGRADED TO OUTPERFORM FROM STRONG BUY AT RAYMOND JAMES
YELP (YELP) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT PIPER JAFFRAY
US Equity Initiations
2U (TWOU) INITIATED WITH AN OUTPERFORM AT MACQUARIE
AKEBIA (AKBA) INITIATED WITH A BUY AT BTIG
AMAG PHARMACEUTICALS (AMAG) INITIATED WITH A NEUTRAL AT B. RILEY FBR
BORGWARNER (BWA) INITIATED WITH AN OUTPERFORM AT OPPENHEIMER
CANCER GENETICS (CGIX) INITIATED WITH A BUY AT MAXIM
CNOOC (CEO) INITIATED WITH A BUY AT NOMURA INSTINET
CUMMINS (CMI) INITIATED WITH AN OUTPERFORM AT OPPENHEIMER
EMERGE ENERGY (EMES) INITIATED WITH A NEUTRAL AT B. RILEY FBR
FAIRMOUNT SANTROL (FMSA) INITIATED WITH A NEUTRAL AT B. RILEY FBR
HI-CRUSH PARTNERS (HCLP) INITIATED WITH A BUY AT B. RILEY FBR
INSTRUCTURE (INST) INITIATED WITH AN OUTPERFORM AT MACQUARIE
NEXTERA ENERGY PARTNERS (NEP) INITIATED WITH AN OUTPERFORM AT CREDIT SUISSE
PETROCHINA (PTR) INITIATED WITH A BUY AT NOMURA
SINOPEC (SNP) INITIATED WITH A NEUTRAL AT NOMURA
SOGOU (SOGO) INITIATED WITH AN OVERWEIGHT AT JPMORGAN
SYNNEX (SNX) INITIATED WITH A BUY AT SUNTRUST
U.S. SILICA (SLCA) INITIATED WITH A BUY AT B. RILEY FBR
WEC ENERGY (WEC) INITIATED WITH A NEUTRAL AT CREDIT SUISSE
Varchev Traders Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
