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- Varchev Finance: Trading day in one post – 20.02.2018
Varchev Finance: Trading day in one post - 20.02.2018
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Loading...Asian Stock Market - Asian stocks were down on Tuesday after a relatively quiet European session, while US markets remained closed. Japan's Nikkei 225 declined by 1.26% as financial, energy and technology companies were trading losses. Car makers traded mostly in negative territory, with Toyota down by 1.22% and Mitsubishi dropped 0.36%. In South Korea, KOSPI declined by 0.89%, mainly due to technology giants. Samsung fell 2.23% and SK Hynix dropped 1.44%. Australian ASX200 declined by 0.35%, with 1.22% growth in the information technology sector being overshadowed by all other companies. In Hong Kong, Hang Seng declined by 0.85% and markets in China, Taiwan and Vietnam remained closed for the New Year's lunar feast.
FX market - USD managed to stabilize against a background of better inflationary expectations, but US dollar and securities traders have clearly shown that they are concerned about double deficits in the US, and will hardly welcome weaker economic data from the country. If these are true, the SELL button at USD will still be in vogue. The recovery of the USD is quite fragile, and in such a period it is characteristic for investors to react poorly to good economic data and to worse ones. The downward trend in the dollar remains in force, despite the short-term rise. EUR, along with other major currencies without AUD, are down. Despite the RBA weak Australian commentary, AUD marks an increase of 0.18% AUD / USD is in the long-term upward trend, and the price is currently in the middle of the upward channel. Currently, the price is far from key levels to take positions, and this is mostly the result of the interest rate differential between the RBA and the Fed, as well as the weak US dollar. What impresses is that the price has reached 200SMA and 61.8% Fibonacci correction of the last upward wave and then has taken up sharply. The levels coincide with horizontal support, and the price response indicates that the area is significant for traders. Subsequent support zone testing would give us good positioning positions with long positions but too risky because they are in the middle of the upward channel. If the USD continues to fall, the pair is likely to enter a period of broad consolidation. Despite declines in stock markets in Europe and Asia, the JPY declines, suggesting that investors have withdrawn from the markets and declining stock movements are just a noise.
Commodities market - GOLD posted a downgrade from the peaks, mainly driven by a temporary US dollar appreciation. The price of the precious metal forms the Double Top formation, which is why we expect the negative sentiment to intensify. The fall in stock markets is likely to boost gold purchases, but we do not expect the metal to mark All Time High. OIL: Oil futures indicate that black gold is trading in Asian classes. Brent oil is a 15 cent rise or 0.2% and WTI is a 50 cent rise or 1.19%. The petroleum sentiment remains positive for the moment. Although it is unclear what OPEC will decide at its next meeting, it is assumed that their agreement will not change until the end of 2018. This will most likely rebalance the oil market. Another important factor is the rising demand for crude oil on a global scale. We reported 2 weeks ago that China officially passed the US as the largest importer and consumer of black gold.
European stock market - European benchmarks will start the downward session. The German DAX will open about 13 points lower at a price of 12380 euros, the French CAC with a 3-point decline of 5248 euros and the UKX points with an increase of 8 points at 7260 pounds. The index for European indices remained positive despite the sell-offs we saw 2 weeks ago. The economy of the Union continues to develop steadily and there is no reason to worry about a crisis. We remain positive about European indices. Today we expect data on business confidence in Germany and the euro area, with expectations being positive. Better data would break the black series of stock markets.
US Stock Market - US markets remain closed, but if we judge US index futures, we can conclude that the correction is over, and risky assets are still in vogue. Rising inflation will stimulate consumption in the country, which in turn is positive for companies and hence for indices. We remain positive towards the US indices. In the early hours of the Asian session, BlackRock announced that US stocks were underestimated given what the Trump Tax Plan would give the US economy.
Economic Calendar for European and American Stock Sessions 20.02.2018
09:00 Germany - PPI
12:00 Germany - ZEW Economic Sentiment
12:00 Eurozone - ZEW Economic Sentiment
13:00 UK - Industrial orders
15:30 Canada - Wholesale Sales
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