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- Varchev Finance: Trading day in one post 15.02.2018
Varchev Finance: Trading day in one post 15.02.2018
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Loading...Asian stock market: Asian stocks advanced on Thursday, taking cues from the rally on Wall Street following the release of stronger-than-expected U.S. inflation data overnight. The Nikkei 225 rose 1.5 percent, or 317.26 points, in early trade. Most sectors were in positive territory despite the firmer yen, with technology and financials recording substantial gains in the morning. Sony rose 2.03 percent and Mitsubishi UFJ Financial Group was higher by 2.49 percent. Over in Sydney, the S&P/ASX 200 rose 0.89 percent, with the energy, materials and gold sectors among the best-performing sectors in the morning. Major miners were higher early on: Rio Tinto rose 2.93 percent and BHP gained 3.48 percent. Elsewhere, Hong Kong's Hang Seng Index rose 1.29 percent in the morning, with the finance, and commerce and industry sectors contributing the most to early gains. Financials were firmly in positive territory, with China Construction Bank up 2.35 percent and HSBC climbing 1.37 percent.
FX market: The Bloomberg Dollar Spot index fell 0.1%. The Yen climbed 0.5% to 106.53, adding to a 1.5% gain in the previous 3 days. The AUD was little changed at 79.33 U.S. cents. The euro trades at $1.2458. South Africa's Rand was little changed, after jumping 2.1% If we can ignore the fundamentals and rely entirely on technical analysis, USD/JPY has made a key breakthrough and is likely to fall with 18.54%. In the last two years, the pair seemed to have entered lethargy, forming a triangular formation. Nearly three weeks ago, on January 25, the price broke the lower diagonal of the triangle, but investors were still trading the pair timidly. What is at the moment capable of exacerbating the negative sentiment is that we have a breakthrough in basic horizontal support, after which the price "hangs in the air". The essence of the triangular formations suggests that the movement after the breakthrough is at the height of the left vertical wall height. In this case, the height of the left side is 20 JPY or a decrease of 18.54% of the breakthrough.
Commodities market: WTI rose 1.2% to $61.32 a barrel, extending 2.4$ advance on Wednesday - biggest of the year. Gold climbed 0.3% to $1,354.21 an ounce. OPEC and their allies almost reached their targets of limiting oil production, but have significantly increased their cost of raw materials and have prompted US Drills to drastically increase seismic extraction. At first glance typical market behavior by companies, but if US mining does not rise, they will be retained in history. Oil inventories in the most oil-consuming countries have fallen to 6-year levels, as limited supply from OPEC+ and high world consumption forecasts have prompted investors to increase purchases. The main problem with oil growth remains the US oil shale, which helped the country outrun Saudi Arabia in extraction.
European Stock market: European indices will start the session with a positive attitude, following the example from Asia and the United States before them. The German DAX will start with around 47 points profit at a price of 12,461; The French CAC wins around 19 points to 5,210; The FTSE 100 remains unchanged. Selloffs have ended and investors are sticking to the old saying "buy the dip". The fundamentals of the European economy remain strong and this will most likely cause the bullish trend to continue. We remain positive on the European benchmarks.
U.S. Stock Market: Stocks rose sharply on Wednesday, poised to notch a four-day winning streak as banks and tech carried major indexes higher. They rose despite a jump in bond yields. The Dow Jones industrial average traded 250 points higher after falling as much as 150 points. Goldman Sachs contributed the most to the gains, rising more than 2 percent. The 30-stock index also erased all of its 2018 losses. The S&P 500 gained 1.4 percent, with financials and tech each rising more than 1.5 percent. Bank of America, J.P. Morgan Chase, Citigroup and Morgan Stanley all traded higher. The index also turned positive for 2018. The Nasdaq composite advanced 1.9 percent, as shares of Facebook, Amazon, Netflix and Alphabet rose. "It almost looks like the market is realizing the economy is still doing well," said Ryan Detrick, senior market strategist at LPL Financial. He noted however, the market is "still in the process of carving off a bottom. ... There's going to be more volatility ahead." U.S. equities opened lower on the back of stronger-than-expected inflation data. The consumer price index rose 0.5 percent in January. Economists polled by Reuters expected a gain of 0.3 percent. Investors also digested weaker-than-expected retail sales for last month. But Bill Northey, chief investment officer at U.S. Bank Wealth Management, said: "This isn't, in our view, problematic inflation, but rather a side effect" of current economic conditions. He noted that corporate earnings are strong and the U.S. economy is accelerating.
Economic calendar for the European and U.S. trading sessions:
10:15 Europe - ECB's Mersch Speaks
12:00 Europe - Trade Balance
12:45 Europe - ECB's Praet Speaks
14:00 Europe - ECB's Lautenschalger Speaks
15:30 USA - Initial Jobless Claims
15:30 Canada - ADP Employment Change
16:15 USA - Industrial Production
17:00 USA - NAHB Housing Price Index
20:30 CAD - BoC Schembri Speaks
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