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- Varchev Finance: Trading day in one post 18.12.2017
Varchev Finance: Trading day in one post 18.12.2017
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Loading...Asian Stock Market: Asian markets are trading higher on Monday. The Japanese Nikkei has a 1.47% increase. Toyota rose 2.86% and Sony by 2.8%. Korean Kospi has 0.17% in positive territory. Australian ASX added 0.68% to its value. Chinese markets, however, do not fully share the optimism of others. Shanghai Composite and Shenzhen Composite are down 0.13% and 0.53%. Hang Seng, however, rose 0.53%.
FX market: USD remains strong against its main competitors. The EUR/USD traded below the average resistance at 1.1850 as the price is currently below the psychological level of 1.18. Janet Yellen's latest statement as FED president was positive for the US economy and the dollar. Expectations are that tax reform will lead to growth in the economy. FOMC expects wage growth and employment growth. The Fed has announced its readiness to react, with changes to monetary policy if needed. All these factors indicate that the future of the USD is bright and we expect an increase in the US currency. CAD remains under pressure. The impossibility of oil to rise above its resistance zone has a negative impact on CAD. For the time being, we remain negative to the Canadian dollar. JPY: The yen will remain under pressure in the coming weeks. In the latest BoJ report, it was proposed to increase the incentives from the central bank. Although it is not yet clear whether this will happen, speculators will not delay and will most likely escape the safe haven currency. We remain negative to JPY.
Commodities market: GOLD remains under its main diagonal resistance and SMA 200, which nourishes the bearish sentiment. Precious metal has begun to lose its momentum after the tax reform in the US is obviously going to happen, prompting investors to look for risky instruments, leaving hedging tools like GOLD in the background. We expect a subsequent drop in precious metal. OIL stabilized during the Asian session. Brent oil climbed 1 cent and traded at $ 63.24 a barrel, and WTI rose 3 cents to $ 57.33 a barrel.
European stock market: European benchmarks will start the week in positive territory. The German DAX will open a 60 point increase, the French CAC with 18 points increase and the UKX UK with 7 points in green territory. Adopting the tax reform in the US will also have a strong positive impact on the banking sector in Europe. The stock market sentiment remains unchanged. We expect further increases in European benchmarks.
American stock market: After the dizzying rally, DJIA does not seem to feel any fatigue yet. The US bluechip index makes a new one after a new peak. The companies that are included in the index have a high affinity for tax reform and will significantly increase their revenue. We remain positive towards the US indices. Negative signal or fundamental change around the bullish trend indicates that the "buy correction rule" remains in effect.
Economic calendar for the European and American trade sessions 18.12.2017
12:00 EU - CPI
13:00 UK - CB Industrial orders
15:30 Canada - Foreign securities purchases
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