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- Varchev Finance: Trading day in one post 22.03.2018
Varchev Finance: Trading day in one post 22.03.2018
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Loading...Asian stock market: Asian markets traded mixed Thursday in what proved to be a choppy session after the U.S. Federal Reserve raised interest rates for the first time this year. Japan's Nikkei 225 rose 0.74 percent and the broader Topix edged up by 0.38 percent, with the mining and oil sectors climbing 4.53 percent and 2.83 percent, respectively. Elsewhere, South Korea's benchmark Kospi advanced 0.6 percent. Major sectors, including technology and manufacturing, traded mixed, while brokerages and oil-related stocks notched gains. Greater China markets gave up early gains, with the Hang Seng Index easing 0.63 percent. Most sectors fell, with technology names dragging on the index, although oil producers firmed. In Australia, the S&P/ASX 200 slipped 0.26 percent in choppy trade as declines were seen in all sectors except energy, materials and gold producers.
FX market: The Bloomberg Dollar Spot Index fell less than 0.05%. The JPY rose 0.3% to 105.76 per dollar. The euro 0.2% to $1.2363. The AUD fell 0.3% to 77.38 U.S. cents. Today we expect the BoE interest rate decision. While there are no expectations for rate hikes today, the traders began to accumulate the next two Bank Of England interest rate rallies after the UK's exclusive UK labor market report. Currently, the probability of raising the next meeting has reached more than 88%. The possibility of another raise during the June 21 meeting also jumped to over 50%. The UK Labor report is extremely positive and shows the strong growth of the British economy despite the concerns Brexit has created. Average hourly wage growth jumped to 2.8% from the expected 2.6%. New jobs increased twice as expected: 168K vs 84K expected, and unemployment fell to 4.3% from 4.4% expected.
Commodities market: WTI crude rose 0.1% to $64.22 a barrel. Gold fell 0.1% to $1,330.29 an ounce. A U.S. government report released Wednesday took traders by surprise and probably raised some smiles at OPEC headquarters in Vienna. The biggest decline in the nation’s crude stockpiles since January brought them below the closely watched five-year average for the first time since 2014, a sign supply cuts by OPEC and its allies are bearing fruit. After the report, West Texas Intermediatecrude skyrocketed above $65 a barrel for the first time in six weeks.
European stock market: Today European markets are expected to open with modest increases. The German DAX will start with 17 points on green around 12,276; The French CAC has a gain of 8 points around 5.228 and the UKX remains unchanged in expecting more information on the progress of the Brexit talks
U.S. stock market: U.S. stocks whipsawed on Wednesday after the Federal Reserve upgraded its economic outlook and increased interest rates. The central bank also increased its rate-hike forecast for next year. The Dow Jones industrial average closed 44.96 points lower at 24,682.31, with Apple as the biggest decliner in the index. The Dow rose as much as 250.38 points during the session. The S&P 500 slipped 0.2 percent to 2,711.93 as consumer staples declined 1.3 percent. At its session high, the broad index had risen 0.8 percent. The Nasdaq composite fell 0.3 percent to 7,345.29 after gaining as much as 0.6 percent. Stocks hit session highs shortly after the Fed made its monetary-policy announcement. "The initial reaction in stock was because the median dot plot didn't go up for 2018," said James Athey, senior investment manager at Aberdeen Standard Investments. "Then there was the more concerned reaction, with investors saying: 'Hold on, there's one more rate hike in for 2019.'" The Fed raised overnight rates by 25 basis points, in line with market expectations. Central bank officials also raised their GDP forecast. "The economic outlook has strengthened in recent months," the committee said in its post-meeting statement, a sentence that had not been in previous releases. "Job gains have been strong in recent months, and the unemployment rate has stayed low."
Economic calendar for the European and U.S. trading sessions:
10:00 Europe - Current Account
10:30 Germany - Markit Manufacturing PMI
11:00 Europe - Markit Manufacturing PMI
11:30 UK - Retail Sales
14:00 UK - BoE Interest Rate Decision
14:30 USA - Initial Jobless Claims
15:45 USA - Markit Manufacturing PMI
19:00 UK - BoE Ramsden Speaks
20:45 Canada - BoC Wilkins Speaks
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