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- Varchev Finance: Trading day in one post 18.05.2018
Varchev Finance: Trading day in one post 18.05.2018
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Loading...Asian stock market: Asian shares traded mixed on Friday following off the soggy close seen on Wall Street overnight amid investor concerns over U.S.-China trade talks. Japanese markets traded slightly higher after the release of core consumer price index data, which slightly missed expectations. The Nikkei 225 added 0.38 percent and the broader Topix edged higher by 0.32 percent. The gains came as the yen extended losses against the dollar, trading at 110.96 to the greenback at 9:36 a.m. HK/SIN. Elsewhere, the Kospi rose by 0.39 percent as Samsung Electronics edged up by 0.3 percent, paring some of its overnight declines while other tech names slipped. Shipbuilders also traded higher in the morning. Greater China markets were steady in early trade. Hong Kong's Hang Seng Index eked out gains of 0.05 percent while mainland stock indexes traded marginally lower. The Shanghai composite shed 0.06 percent and the Shenzhen composite slipped 0.26 percent.
FX market: The Canadian dollar gained Wednesday against the greenback and is the only Group-of-10 currency to hold firm this quarter against the U.S. dollar. Climbing oil prices and rising market expectations for Bank of Canada policy tightening have helped buoy the loonie by 0.6 percent since the end of March, while other currencies from the Norwegian krone to the Japanese yen have lost ground to the greenback as it advances along with Treasury yields. Тraders are betting the U.S. dollar’s strength will hobble the rally in emerging markets. A gauge of expected volatility in developing-nation currencies has risen to the highest level since February 2016 relative to peers in the Group of Seven nations. The dollar is rising for an 18th time in the past 22 days, undermining the carry trade in higher-yielding currencies.
Commodities market: Nickel prices are poised to slump as much as 20 percent as rising prices spur a surge in supply from Indonesia and China, according to Ian Roper, head of international business at researcher Shanghai Metals Market. The metal, which in April touched its highest level since February 2015, has climbed 13 percent in 2018 making it the best performer among base metals. Nickel has been boosted this year partly by misplaced optimism surrounding the timing of a major bump in demand from new energy vehicles, Roper said. Copper’s poised for a fresh rally this year, according to Citigroup Inc., which sees the metals market picking up by the third quarter as Chinese demand proves supportive and global trade tensions ease. Copper could rally to $7,500 per metric ton in the next three to six months, about 10 percent above current levels, as macro conditions and risk appetite improve, said Tracy Liao, a commodities strategist at the bank. The metal, which is up nearly 22 percent during the past year, has not touched that level since April 2013.
European stock market: European stocks most dependent on the economy, which performed relatively sharply earlier this year, are losing momentum. The slowdown comes as the eurozone economy weakens and Germany's economic growth halves in the first quarter. Credit Suisse says one of the reasons for the recent weakness, despite strong profits, is investors' expectations for a sharp slowdown in global growth as early as next year. Today European benchmarks are expected to open with mixed moods. The German DAX wins around 22 points, the French CAC has 5 points gain and UKX loses 9 points.
U.S. stock market: As 10-year Treasury yields hit seven-year highs, the question many investors are asking is whether they should cheer it as a sign of economic vigor or brace for higher rates making equities a pariah. The S&P 500’s annual profits are currently about 4.8 percent of the index’s value. While not everyone is in love with the comparison, many investors feel safe when that number is comfortably above the yield on the 10-year note -- which it is, by about 1.7 percentage points. Still, the rise in bond yields has narrowed the gap by about 40 basis points since the start of the year.
Economic calendar for the European and U.S. trading sessions:
09:00 Germany - PPI
12:00 Europe - Trade Balance
15:30 Canada - CPI
15:30 Canada - Retail Sales
16:15 USA - FOMC Member Brainard Speaks
17:30 USA - ECRI Weekly Index
20:00 USA - U.S. Baker Hughes Oil Rig Count
22:30 USA - CFTC Speculative Net Positions
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