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- Varchev Finance: Trading day in one post – 20.12.2017
Varchev Finance: Trading day in one post - 20.12.2017
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Loading...Asian Stock Market - Asian markets are trading mixed, tracking mixed results on Wall Street yesterday. The calendar during the Asian session was a cure and investors focused on the progress of the US tax reform. The Nikkei 225 rose 0.13%, with the banking and trading companies profitable. Asia's technology sector continued to decline, with Nintendo dropping -1.31%. The car sector dropped after Subaru declined by 5.08%. Meanwhile, Kospi is trading almost unchanged, as profits from manufacturing companies offset blue chip losses in the country, such as Samsung (-0.63%) and Hyunday Motors (-0.65%). Australian markets are also traded mixed, with mining companies showing growth but offset by losses in the telecommunications and utilities sectors. Markets in China are trading slightly down: Hang Seng dropped 0.03%, Shanghai composite by 0.18%, and Shenzhen by 0.35%.
FX market - Dollar index, which tracks the strength of the US currency against six other major currencies, is traded unchanged, at around 93.44 points. There are several reasons for anemic movements with USD. Firstly, the vote on the Trump Tax Plan at the congress and the subsequent rejection cast a dose of uncertainty on investors and they prefer to stay away from the dollar. Then, we are waiting for the official US GDP figures on Friday, where it will become clear how much the US economy has grown. On the other hand, the week before Christmas is characterized by a low volatility and investors avoided trading. Following bad data on New Zealand's trade balance, NZD declined sharply, with data confirming the country's bad prospects. To date, the currency traded with the largest minus for the day of -0.20%. GBP has grown slightly, currently trading at 1.3394 against the USD. EUR is traded without changing the blank economic calendars so far and the upcoming holidays.
Commodity market - Oil futures continue to rise, reflecting a positive positive sentiment. The US Petroleum Institute (API) has announced that US oil reserves will drop by approximately US $ 5.2m. barrels instead of the estimated 3.15m. If the decline is confirmed by official government figures on Wednesday, it will have a strong positive impact on oil prices and will confirm the troubled US supply on the back of the closed North Sea gas pipeline. Although pipeline repairs are on track, the Forsty Pipeline system is among the most important pipelines in the world, which largely determines the prices of black gold. GOLD marks an increase as investors prefer it to the uncertainty stemming from the vote of tax reform and the thin market before and after the holidays.
European stock market - European markets are expected to start up with an increase, apparently reflecting the high probability that the US Senate will vote in favor of tax reform. The German DAX30 will start trading 40 points higher at a price of € 13267. The French benchmark CAC40 will open up to 15 points at a price of € 5392 and the British FTSE100 with 10 points at a price around 7540. Today, fiscal reform in the US remains the focus because the congress rejected the last vote. Today there is a new vote in the congress, and if the tax reform is approved, the probability of passing through the senate is great. At the final adoption of the tax reform we expect a slight decrease in the indices and support in the long run.
US stock market - US indices dropped after Apple's decline has affected the entire technology sector. Dow Jones closed 37.45 points down to 24,754.75 points. The S&P 500 fell 0.3 percent to 2,681.47 and the Nasdaq technology lost 0.4 percent to 6,663.85 points. The technology sector is the best performing this year, rising by nearly 40% in 2017, so investors are using the downgrade as an opportunity to raise profits by the end of the year. Investors also paused after raising share prices to new peaks in anticipation of US tax reform. The bill passed in the House with 227 votes in favor against 203 against, overcoming the united opposition of the Democrats and the 12 Republicans who voted against it. The plan includes serious tax cuts for corporations and rich taxpayers, as well as temporary tax cuts for some citizens and families.
Economic calendar for European and US trade sessions - 20.12.2017
09:00 Germany - Produce Price Index PPI
11:00 Eurozone - Current account
15:00 Germany - Speech by Jens Weidmann, Bundesbank President
15:15 UK - Speech by Mark Carney, Governor of Bank Of England
15:30 Canada - Wholesale Sales
17:00 USA - Selling Existing Homes
17:30 USA - Crude Oil inventories
23:45 New Zealand - Q3 Official GDP
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