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- Varchev Finance: Trading day in one post – 16.03.2018
Varchev Finance: Trading day in one post - 16.03.2018
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Loading...Asian stock market: Most Asian markets traded moderately lower on the last day of the trading week amid a backdrop of global trade-related developments and political news out of Washington. In Tokyo, the Nikkei 225 gave up earlier gains to slip 0.66 percent and the broader Topix was off by 0.47 percent. Among major sectors, automakers came under pressure while technology names traded mixed. Meanwhile, in Seoul, the Kospi edged down 0.4 percent as declines in heavyweight tech names dragged the index lower despite gains in financials and retailers. Manufacturing stocks were mixed. Greater China markets searched for direction, with Hong Kong's Hang Seng Index lower by 0.31 percent. China Unicom advanced 1.89 percent, but those gains were unable to lift the broader index as property names and the energy sector drove losses. Markets on the mainland traded slightly lower, with the Shanghai composite lower by 0.12 percent and the smaller Shenzhen composite off by the same level.
FX market: The Bloomberg Dollar Spot Index traded flat after advancing 0.5% on Thursday for its biggest rise in over two weeks. The euro was flat at $1.2302. The yen gained 0.3% to 105.98 per dollar. The NZD lost 0.3% to 72.55 U.S. cents. Keep an eye on the yen. A USD/JPY drop through key 105.80/106.00 support may lead to an accelerated fall that would hammer already-fragile risk sentiment. Fresh headlines on the land-sale scandal or trade tensions are all that's needed. Large dollar bids near 105.80 were only partially filled on Thursday. A slump below there could trip key stops and see the pair test the weekly dollar support trend line at 105.39. That's when it gets scary.
Commodities market: WTI crude was little changed at $61.18 a barrel. Gold was steady at $1,316.62 an ounce after falling 0.7% on Thursday. OPEC for the first time forecast that new oil supplies from its rivals will exceed growth in demand this year as the U.S. industry thrives. In its monthly market report, the Organization of Petroleum Exporting Countries raised its expectation for supply growth from the U.S. and other producers for a fourth consecutive month, to 1.66 million barrels a day. That would more than cover demand seen climbing by 1.6 million barrels a day and suggests that efforts by the group and Russia to clear a global glut by cutting output are backfiring.
European stock market: During the last trading day of the week, European indices will begin trading with decreases. The German DAX will open with a 17-point loss at 12,365; The French CAC is in red zone with 6 points and the UKX remains unchanged. Today is expected inflation data in the region and given the tense political environment due to the possible trade war, investors remain cautious.
U.S. stock market: The Dow Jones industrial average rose on Thursday, but its gains were held in check as investors assessed the possibility of a trade war. The 30-stock index traded 114 points higher, with UnitedHealth contributing the most to the gains. Boeing, which has struggled throughout the week, fell 0.3 percent in choppy trade Thursday. "Boeing got hit three days in a row earlier in the week because people felt that was a way the Chinese and others could reach in," said Art Cashin, director of floor operations for UBS, on CNBC's "Squawk Alley." "You're going to get that kind of ebb and flow," Cashin said. "I would continue to keep my eye on Boeing. I think it's going to be the critical factor in the Dow." The S&P 500 fell 0.1 percent, with materials and energy stocks offsetting a 0.3 percent gain in industrials. The Nasdaq composite pulled back 0.2 percent. The White House is thinking about implementing tariffs on at least $30 billion of Chinese imports as part of a package of anti-China measures, the Wall Street Journal reported. Reuters also reported Tuesday that President Donald Trump may impose tariffs on $60 billion of Chinese goods. Investors worry that other countries could retaliate by implementing their own tariffs on U.S.-made goods and sparking a trade war. This would hurt companies who do business overseas, especially large multinationals like Boeing.
Economic calendar for the European and U.S. trading sessions
09:00 Germany - Wholesale Price Index
12:00 Europe - CPI
14:30 USA - Housing Starts
15:15 USA - Industrial Production
16:00 USA - JOLTS Job Openings
19:00 USA - Baker Hughes Oil Rig Count
21:30 USA - CFTC Net Positions
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