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- Varchev Finance: Trading day in one post – 20.07.2018
Varchev Finance: Trading day in one post - 20.07.2018
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Loading...Asian stock market: Asian shares came under pressure on the last trading day of the week as the yuan weakened further, with investors also digesting U.S. President Donald Trump's criticism of the Federal Reserve. Japan's Nikkei 225 declined 0.66 percent amid broad-based losses, although utilities clung to slight gains. South Korean stocks saw more measured moves to the downside, with the Kospi slipping 0.21 percent. Samsung Electronics, an index heavyweight, edged up by 0.43 percent, but other large cap tech names were mixed, with SK Hynix down 2.99 percent. Down Under, the S&P/ASX 200 bucked the trend to tack on 0.3 percent as most sectors rose, although materials dropped 1.15 percent after base metal prices took a hit overnight. Elsewhere, Hong Kong's Hang Seng Index shed 0.54 percent, with sharp declines seen in the materials and property sectors.
FX market: Dollar declines on Trump's comments, again.. Trump said, he is not happy about interest rates going up. Morgan Stanley: The market is too bearish towards the euro. The bank is looking for a weaker dollar in the coming weeks. The market is too bearish from the euro, too affected by European political risks and the prospect of growth. UBS analyst says if Britain chooses not to have a deal for Brexit, the pound may sink 8%. This would be a mirror-day for GBP from the vote for Brexit, where pounds fell by just that much. At the meeting between US President Donald Trump and Theresa May, this scenario began to sound realistic, and if the situation continued to evolve in that direction, GBP could get a new hit like this.
Commodities market: Gold reached levels of 1229.25. The precious metal was moving downward for the strong dollar. After the dollar sold out earlier for Trump, it rose. Looking at hourly chart we can see that the price was close to Fibonacci level of 38.2% at 1232.16 levels, we can assume that the price will want to go to this level of correction and from there continue the downward trend.
European stock market: With the announced end of QE at the June meeting, the ECB signaled strong growth prospects and inflation in the eurozone. The discussion on sustainability of recovery and any acceleration of inflation will continue. Soft patch or drop? It is still unclear whether the eurozone has been patched or is in the middle of long cooling. While hard macro data published after the ECB meeting in June were encouraging and showing strong growth in the second quarter, soft indicators have shown signs of decline. Moreover, rising trade tensions and increasing geopolitical uncertainty could further undermine the sentiment in the eurozone. In the next few weeks, PMI and Ifo data should receive more attention than usual and give some insight into the future direction of the euro area economy.
U.S. stock market: Russia's ownership of US bonds fell from $ 96.1 billion in March to $ 48.7 billion in April and then to $ 14.9 billion in May. On Tuesday, the US Treasury Department published a list of the 33 largest investors in US debt. Russia was among the top 10 in 2010 with a property of 176.3 billion dollars, but in May it ranked under Chile. The country began unloading US debt, with President Obama lifting sanctions against Russia in 2011. Today investors will focus on the earnings of General Electric and Honeywell. General Electric expects to report a profit of 17 cents per share on revenue of $ 29.23 billion. Honeywell expects to report the second quarter with profits of $ 2.01 per share and revenue of 10.82 billion. Also a good question is will the better data from Microsoft increase Nasdaq? Microsoft reported revenue of 30.09 billion dollars in revenue. That was above Wall Street's estimates of 29.21 billion. Microsoft's cloud technology business continues to grow as Azure, a competitor to Amazon's web services, has seen strong growth, with product sales rising 89 percent in the quarter. Microsoft's share rose 0.24 percent to $ 104.75 in non-stock trading hours.
Economic calendar for the European and U.S. trading sessions:
15:30 Canada - CPI
15:30 Canada - Retail Sales
20:00 USA - U.S. Baker Hughes Oil Rig Count
22:30 USA - CFTC Speculative Net Positions
Trader Aleksandar Kumanov Read more:
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