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- Varchev Finance: Trading day in one post 19.12.2017
Varchev Finance: Trading day in one post 19.12.2017
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Loading...Asian stock market: Major Asian indexes were mostly higher on Tuesday after U.S. stocks closed the Monday session at record highs. Japan's Nikkei 225 hovered around the flat line, last trading higher by 0.01 percent. Kospi index shed 0.21 percent as blue-chip tech names rose. In Sydney, the S&P/ASX 200 edged up 0.57 percent. Greater China markets, meanwhile, trended higher. The Hang Seng Index was up a convincing 0.59 percent. Mainland markets also saw moderate gains, with the Shanghai Composite tacking on 0.34 percent and the Shenzhen Composite advancing 0.59 percent. With just two weeks to go before the new year begins, many fund managers around the world seem to agree on one thing: The rally in Asian stocks will continue into 2018. Strength in the equity market, they said, will be supported by regional economies growing strongly and solid company fundamentals that will drive earnings in the next 12 months. Stock markets globally have rallied for much of 2017, with the MSCI All Country World Index climbing more than 22 percent by the end of November. The MSCI All Country Asia Pacific Index rose at a stronger rate of 29 percent during the same period. JPMorgan Asset Management, BlackRock and Value Partners are some of the investors with a bullish view on Asian stocks. "We're particularly positive on Asian markets, particularly North Asian countries. For example, Hong Kong and China I think are still very strong in terms of corporate earnings and also PMI (Purchasing Managers' Index) in China is still over 50 and we believe it will continue to maintain at a strong level during 2018," Kelly Chung, senior fund manager at Value Partners, told CNBC on Monday. The PMI is a measure of economic activity. A reading above 50 indicates expansion, while a reading below that signals contraction. Chung's view echoed those of major investors globally, including the world's largest money manager BlackRock, which said last month Asian equities were still cheap relative to historical levels and other asset classes.
Currency market: The Bloomberg Dollar Spot Index was little changed Tuesday. The yen was little changed at 112.63 per dollar. The euro was little changed at $1.1778. The pound was trading at $1.3375 after advancing 0.5% Monday. The RBA Meeting minutes was published tonight. Here are the main take-aways: Further AUD rise would slow expected inflation, economy pick up RBA board judged steady policy consistent with inflation, growth goals. Recent data had increased confidence that unemployment would continue to fall, inflation rise. Uncertain on how far and when stronger growth would feed through to wages and inflation. Outlook for household consumption a "significant risk" given slow income growth, high debt. Any further rise in A$ would slow expected pick-up in inflation, economy. Wage growth slower than expected in Q3, but appeared to have stabilized.
Commodity market: WTI crude was up 0.2% at $57.26 a barrel. On the energy front, oil prices were little changed as markets digested a mix of variables. That included the ongoing Forties Pipeline shutdown in the North Sea and an oil union strike in Nigeria, although Reuters reported that the strike was ended within the day. Gold was at $1,261.97 an ounce.
European stock market: Today there is a note of caution on European markets. Major stock indices are expected to open with mixed moods. The German DAX will open 13 points to 13,325 points; The French CAC will start the session with a 6-point loss of 5,414; while the UKX remains unchanged. Today's focus will be the result of the US tax reform, as major European companies have exposures in America, and these corporate benefits will also affect them. At 11:00, we also look at the German Ifo Business Climate Index, which may have a short-term effect on the DAX trend.
U.S. stock market: U.S. stocks closed at all-time highs on Monday as investors eagerly awaited a vote on a bill that would cut corporate taxes. A slew of corporate deals also helped lift sentiment. The Dow Jones industrial average jumped 140.46 points to 24,792.20, marking its 70th record close of the year. The 30-stock index is also up more than 5,000 points for the year. The S&P 500 gained 0.6 percent to a record closing high of 2,690.16, with materials and telecommunications as the best-performing sectors. The Nasdaq composite also finished at an all-time high, advancing 0.8 percent 6,994.76; briefly topped 7,000 for the first time.
Economic calendar for the European and U.S. trading sessions:
11:00 Europe - German Ifo Business Climate
12:00 Europe - Wages in Eurozone
15:30 USA - Building Permits
15:55 USA - Redbook
23:45 New Zealand - Current Account
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