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- Varchev Finance: Trading day in one post 14.11.2017
Varchev Finance: Trading day in one post 14.11.2017
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Loading...Asian Stock Market: Most Asian indices traded with declines on Tuesday. Japan's Nikkei rose 0.36%, with technology companies having the biggest contribution. Shares of Sharp and Toshiba rose 2.62% and 6.45%. Korean Kospi posted a 0.24% drop. Australian ASX declined by 0.87%. Chinese markets are trading in mixed moods. Shanghai composite and Shenzhen composite fell 0.29% and 0.28%, while Hang Seng added 0.19% to its value. The negative industrial production data from China has dragged most Asian benchmarks to negative territory.
Forex market: USD: The dollar remains relatively stable as the EUR/USD is still under the key resistance of 1.1700. Today we expect a statement from the big central bankers and they will be the engine of the market. We expect high volatility both in the FX market and in the stock market. For the time being, we remain positive to the USD, as the likelihood of the Fed to raise the interest rate in December is estimated by over 90% of market analysts.CAD: Canadian currency resumed its decline after last week's rally. In recent months, Canada data has been disappointing the market, and this has led investors to believe that BoC will not raise interest rates soon. Positive for the Canadian dollar may be the rise in oil, but as the price of black gold continues to rise, it will ultimately become unprofitable for shale producers to extract oil, and that will affect CAD negatively. EUR: Today we expect M.Draghi's statement, as we will be looking for more guidance on when the interest rate increase will happen. Although economic data from the EU is positive, the market may want to make development faster. This keeps the euro under pressure. JPY: Yen can not yet find strength. We expect BoJ not to raise the interest rate this year nor change QE, these two factors are negative for JPY. Still, USD/JPY remains below the key resistance at 114.50. Moving above these levels will weaken the JPY and will give reason to enter a short position against the yen.
Commodities market: OIL: United Arab Emirates Energy Minister Suhail al-Mazroui announced on Monday that he expects OPEC and other major oil producers to extend their agreement to curb black gold mining after March 2018. If it comes to extending the agreement, the price of black gold will most likely continue to rise. We expect the OPEC meeting in Vienna on 30 November to see the fate of the agreement. GOLD: It's like the hedging tools are in the background. When the risk appetite is exacerbated, GOLD suffers. Additionally, rising inflation in the US keeps the metal price low. We remain negative to GOLD.
European stock market: European indices will start the session on Tuesday in a downside following Asia's negativity and worse than expected data from China. The German DAX will open around 13090 or 15 points lower, the French CAC at around 5340 and the UKX at around 7400. Today, the stock market will be driven by the GDP figures of the union and Mario Draghi's statement.
American Stock Market: US stock indices ended the session on Monday with a rise. S&P rose 0.1%, DJIA with 0.07% and Nasdaq 0.1%. Unexpectedly, GE cut its dividend by 50%, dragging the company's stock price down by 7.2%. On the other hand, Dubai airline Emirates announced its bid for Boeing for 40,787 Dreamliners, a $ 15.1 billion deal. US investors are worried about tax reform. Many analysts believe that even if it happens, corporate discounts will only come true in 2019.
Economic calendar for the European and American trade sessions 14.11.2017
9:00 Germany - GDP
10:15 Switzerland - PPI
11:00 USA - IEA report
11:30 UK - CPI , PPI
12:00 UK - BoE gov Carney speaks
12:00 USA - FED Chair Yellen speaks
12:00 Germany - ZEW Economic sentiment
12:00 EU - BoJ Governor Kuroda speaks
12:00 EU - ECB President Draghi speaks
12:00 EU - GDP
12:00 EU - Industrial production
12:00 EU - ZEW Economic sentiment
15:30 USA - PPI
15:55 USA - Red book
23:30 USA - API weekly crude oil stock
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