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- Varchev Finance: Trading day in one post – 20.08.2018
Varchev Finance: Trading day in one post - 20.08.2018
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Loading...Asian Stock Market - Asia markets rose on Monday morning after Wall Street's higher final last Friday. Positivism grew after US President Donald Trump and Chinese leader Xi Jinping hoped to discuss trade between the US and China in November. But everything will depend on this week's 22 and 23 week when US and Chinese sales representatives are expected to decide on their relationship. In Japan, the Nikkei 225 fell 0.29% while the other Asian indices traded with a raise. Shanghai composite jumped by 0.12%, HSI by a near percentage, and ASX200 and Kospi respectively by 0.05% and 0.06%.
FX Market - As the TRY trade in the Asian session, TRY is once again the most attractive currency. The Turkish currency has managed to return yet a small part of its losses, but investors do not take massive purchases as they expect the US to say what exactly the sanctions will be against the country. The JPY managed to see a downward trend in view of rising global stock markets. Today we do not expect important news from the economic calendar, and this will contribute to a lower volatility during the European and US stock market sessions.
Commodity Market - Gold remains under pressure, against news from China. In view of the positive positivism, the traders will further unload their long positions with the precious metal, and this will further exert pressure. Due to the lack of price response, I expect it to stay low down in the area around $1170/$1200 per troy ounce. Sustainable growth in US shale oil production is likely to offset global production problems over the next few months. The moods of the oil market are heavily influenced by the growing demand and supply gap for oil. On the one hand, we have an escalating trade war and a currency crisis in Turkey that are driving large oil-consuming companies to lower their stocks in order to protect themselves against possible losses and, on the other hand, the rising US dollar, which further pushes the price down (albeit purely correlative).
European stock market - European markets will open slightly downwards, expecting these gaps to fill in the first few minutes. The lack of fundamental news, as well as August's low liquidity, I expect to lead to bad trade during the day.
US stock market - Dow added 110.59 points to its value to 25669.32 points after the announcement that US President Donald Trump and Chinese leader Xi Jinping are hoping to discuss US-Chinese trade. The S & P 500 also jumped 0.33% to a level of 2850.13 points, and Nasdaq Composite wiped out earlier in the day and finished 0.1% up to 7816.33 points.
Economic Calendar for European and US Trade Sessions - 20.08.2018
09:00 Germany - PPI
18:00 USA - Speech by Bostic, Member of FOMC
Charts: Used with permission of Bloomberg Finance L.P.
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