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- Varchev Finance: Trading day in one post – 13.04.2018
Varchev Finance: Trading day in one post - 13.04.2018
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Loading...Asian stock market: Asian shares were buoyed on Friday, with indexes in the region trading higher across the board after U.S. markets gained in the last session. The overnight advance in markets stateside came after President Donald Trump clarified in a tweet that a possible U.S. missile strike on Syria might not be forthcoming. Japan's benchmark Nikkei 225 rose 1 percent and the broader Topix saw gains of 0.79 percent, with financial and materials stocks advancing. Major exporters, including tech and automakers, also rose amid the firmer dollar. Meanwhile, South Korea's Kospi edged up by 0.46 percent, helped by a strong showing in technology names. Hong Kong's Hang Seng Index was up 0.52 percent as mainland markets also notched moderate gains. The Shanghai composite edged higher by 0.26 percent and the Shenzhen composite tacked on 0.53 percent.
FX Market: The Bloomberg Dollar Spot Index was flat after Thursday small gain. The euro held at $1.2331. The British pound rose 0.1 percent to $1.4237 after climbing 0.4 percent. The Japanese yen was flat at 107.37 per dollar. The pound’s good fortune is set to continue this month, if seasonality is any guide. Sterling appreciated versus the dollar every April during the last 13 years in what Bank of America Merrill Lynch describes as the strongest seasonal trend among Group-of-10 currencies. In a research note, the bank recommended a two-month option trade to take advantage of the periodic strengthening pattern. The trend corresponds to a typical increase in incoming capital at this time of the year, driven by dividend payments to British shareholders from foreign companies and other investment inflows that mark the start of the U.K. financial year. The fact that sterling has strengthened in April even during past episodes of heightened financial instability and political risks helps boost conviction in the seasonality, according to Bank of America. The pound’s 3.2 percent rally last April was the second-best monthly gain of 2017. While it is the third-best G-10 performer this year with a 4 percent gain to about $1.4050, option volatility on the currency averaged higher last quarter amid uncertainties about Brexit. Still, the seasonal appreciation pattern may withstand such concerns, according to Bank of America’s head of G-10 currency strategy. Yet, seasonality won’t necessarily give sterling a large boost this year, given it has already rallied more than 2 percent in March, according to Rabobank. The bank sees the U.K. currency rising to $1.44 by the first quarter of 2019.
Commodities market: West Texas Intermediate crude fell 0.3 percent to $66.87 a barrel. Gold added 0.4 percent to $1,340.53 an ounce after sinking 1.4 percent. Another gauge is indicating copper bulls are getting weary. Open interest, a tally of outstanding contracts on the Comex in New York, fell this week to the lowest since Dec. 18 amid speculation the U.S.-China trade spat will curb global economic growth. “The tariff talk spooked the market,” says Bob Haberkorn, a senior market strategist at RJO Futures in Chicago. “People want out of copper because of the risk associated with it.”
European stock market: European investors are not tied to the optimism seen in Asian trades and indexes in the region will open with modest losses. The German DAX kicks off the session with about 15 points decline at 12,410; The French CAC will open around 7,303 points down, while the UKX has 17 points in negative territory. Today traders will be paying close attention to the CPI data in Germany. Inflation news will show where the world's fourth-largest economy is going, and unexpected results can certainly influence European benchmarks.
U.S. stock market: Stocks rallied in the U.S. on Thursday as President Donald Trump calmed investor concern over trade tension by saying he was considering rejoining the Trans-Pacific Partnership, a pact he pulled out of shortly after taking office. The S&P 500 Index closed up 0.8 percent at 2,663.99 and is poised for its best weekly gain in five weeks. Following a turbulent February and March, the benchmark gauge is just 0.4 percent away from erasing losses for the year, though it remains 7.3 percent below its January high. With all the concerns about military escalations in the Middle East and the possible trade war between the US and China, companies' revenue reports can play the role of a sip of fresh air for investors.
Economic calendar for the European and U.S. trading sessions:
09:00 Germany - CPI
12:00 Europe - Trade Balance
15:00 USA - FOMC Member Rosengren Speaks
16:00 USA - FOMC Member Bullard Speaks
17:00 USA - Michigan Consumer Expectations
17:30 USA - ECRI Weekly Index
20:00 USA - Baker Hughes Oil Rig Count
22:30 USA - CFTC Speculative Net Positions
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