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- Varchev Finance: Trading day in one post – 16.02.2018
Varchev Finance: Trading day in one post - 16.02.2018
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Loading...Asian Stock Market - Wall Street and Europe's index gains could also be shifted to Asia, although much of the Asian markets were closed due to the lunar New Year. As expected, during the Asian session, liquidity was very thin, but this did not prevent indexes traded on open exchanges from rising, reflecting the increased positivism accumulated during the European and US Stock Exchange yesterday. The Japanese Nikkei rose 1.69% despite strong yen growth. The Japanese shares also received fundamental support from Shinzo Abe, who re-appointed Bank Of Japan Governor Haruhiko Kuroda. ASX rose 0.10% mainly due to the weaker national currency and the position that RBA Governor Philip Lowe took during his speech. The markets in Hong Kong, Singapore, South Korea and China remained closed.
FX market - USD was again on the side of losers and Dollar Index fell by -0.31% in the first hours of the Asian session. This, in turn, supports the stock markets and raises the price of gold at the same time. We expect the USD to start reflecting good economic data only when the Fed begins to raise interest rates and economic data support it. JPY posted the strongest growth during the Asian session, mainly because of investor concerns and their desire to hedge the long ones that are on the stock market. AUD and NZD are also boosted by rising commodity prices and increased appetite risk after the collapse of markets. GBP is trading sharply, with a slight increase of 0.32%, and investors expect retail sales data from the island, which is likely to decline, as consumer purchasing power remains weak after the Christmas and New Year holidays.
Commodities market: West Texas Intermediate crude rose 0.64% to $61.56 a barrel after jumping 2.4% on Wednesday - the biggest gain for the year. Gold rose 0.46% to $1,361.21 per ounce. The low dollar exchange rate raised the price of industrial metals - Copper traded 0.23%. In spite of oil growth, the foundation behind the price remains highly negative as the US is yet to expand production and exports, and has already overtaken Saudi Arabia in oil production. Investors will remain cautious as China will release commodity futures denominated in China Yuan at the end of March.
European Stock Market - Taking into account positivism during the Asian session and this gained during the US session, European indexes will open up with upsurge. The German benchmark DAX30 will start the trading session by about 27-30 points higher at a price of around €13,382. The French CAC40 is expected to start by about 15 points higher at a price of €5235. On the island UKX will open the last business day with an increase of 10 points at a price of approximately 7,159 pounds. We expect investors to approach the UKX more conservatively, as at 11:30 we expect retail sales data on the island.
US Stock Market - The leading stock indices in the US completely ignored the wave of sales and recorded a fifth consecutive session of growth. Promotions are a fact, although the Fed's expectation to raise interest rates does not change. It seems that markets are learning to live at high interest rates. This is quite likely, as history shows that the average yield during a period of interest rate increase is 20% and the maximum drawdown was 4%. Despite concerns over the Fed, the industrial Dow Jones rose by more than 300 points and climbed again above the 25,000-foot mark. Trading ended at 25,200.37 points, an increase of 1.23%. For the S & P 500, the rise today is 1.21% to 2,731.2 points, while the Nasdaq rose by 1.58 percent and closed at 7,256.43 points. From corporate news that affected Wall Street trade, Cisco Systems reports. The company reported revenue growth for the first time in two years, resulting in a share price increase of 4.73% to 44.08 dollars per share.
Economic calendar for the European and US trade session - 16.02.2018
10:20 Eurozone - Speech by Benoit Coeuré, Member of the ECB
11:30 UK - Retail sales
15:30 United States - Building permits
15:30 US - Housing starts
15:30 Canada - Industrial Sales
17:00 USA - Michigan Economic Sentiment
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