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- Varchev Finance: trading day in one post 12.01.2018
Varchev Finance: trading day in one post 12.01.2018
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Loading...Asian Stock Market: Asian stock markets are trading in mixed moods. Japan's Nikkei is down 0.06%, with the largest drop in automobile and technology companies: Toyota 0.13% down, Honda 1.2%, Sony 0.91%. Australian ASX reports an increase. Large mining companies in the country register a rise. Rio Tinto 1.85% and BHP Billiton 2.08%. Korean Kospi added 0.12% of its value. The Chinese markets also traded with a rise ... in general. Hang Seng is 0.29%, Shanghai composite by 0.1%, but Shenzhen composite lost 0.08% of its value.
FX market: USD continues to be among the weakest currencies on the market. The dollar index, which measures the relative strength of the US currency, went below the key level of 92. EUR/USD is again above $1.20, making the dollar vulnerable to further losses. Today we expect US CPI data. If we see inflation approaching 2%, the USD will probably return some of its losses. Today's data depends on what the market will expect from the Fed and the interest rate in 2018. CAD: The Canadian dollar remains strong. The country's economy is developing well and at a normal pace. The rising price of oil also contributes a lot to a strong Canadian dollar. The market estimates the chances of an interest rate increase at the next BoC meeting (which is next week) at 80%. We remain bullish towards CAD. JPY: As BoJ cut its quantitative easing, JPY took a sip of air. The yen has managed to return some of its losses, but still remains weak compared to other major currencies. For the moment, we expect the yen to remain relatively strong, but to refrain from taking a high risk on the JPY cross pairs.
Commodities Market: GOLD: It seems like there's nothing to stop the price of gold. Although the global environment is calm, investors continue to appreciate the hedging metal heavily. The main reason for this is the weak dollar (GOLD is quoted in USD) and low US inflation. During the Asian session, gold broke its peak and is currently trading around the key level of 1330$. Today, during the news of the US at 15:30, we expect volatility in the price of precious metal. OIL: Oil futures show a decrease in the price of black gold during the Asian session. WTI fell 0.34% to 63.58 dollars a barrel, but Brent remained almost unchanged and traded at 69.25 dollars a barrel.
European stock market: Europeans will open with mixed moods. The German DAX will open a 10 point increase, the French CAC with a 2 point increase, and the UKX with a 3 point decrease. Today, the results of Chancellor Merkel's latest attempt to form a government must come out. Any news or speculation will immediately affect the German index and stocks.
American Stock Market: The fiscal report season has begun and this is seen in the US stock market. The indices made new highs on Thursday. For the time being, driven by companies' better reports, investors remain undisturbed. We need to be careful when big Wall Street banks publish their fiscal statements. We believe that due to the tax reform, banks will report much worse than expected results for the fourth quarter. But in the long run, tax breaks will have a very positive impact on the banking sector.
Economic calendar for the European and American trade sessions 12.01.2018
9:45 France - CPI
15:30 USA - CPI
15:30 USA - Retail sales
17:00 USA - Business inventories
18:30 Germany - The president of Bundesbank speaking
20:00 USA - U.S. Baker Hughes oil rig count
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