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- Varchev Finance: Trading day in one post – 22.08.2018
Varchev Finance: Trading day in one post - 22.08.2018
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Loading...Asian stock market: Asian markets were mixed in morning trade on Wednesday as investors reacted to developments in U.S. politics that saw President Donald Trump’s former personal lawyer Michael Cohen plead guilty in federal court. Australia’s ASX 200 fell 0.47 percent in morning trade, with sectors such as utilities and the heavily-weighted financials subindex trading lower. In Japan, the Nikkei 225 traded up by 0.15 percent while South Korea’s Kospi rose 0.14 percent. The Greater China markets were in negative territory in early trade. The Hang Seng index was down by 0.49 percent while the Shanghai composite and Shenzhen composite were lower by 0.6 and 0.672 respectively.
FX market: President Donald Trump is getting his wish, at least for a day: The U.S. dollar is losing ground Tuesday a day after he said he’s disappointed with the Federal Reserve’s intention to keep hiking interest rates. Since he’s been in office, Trump has expressed his preference for a weaker currency, believing it makes U.S. exports more attractive on a global stage while he’s trying to lower the national trade deficit. In remarks Monday to Reuters, Trump again criticized the Fed and said he was hoping that Chairman Jerome Powell would have leaned more toward cheaper money. He took his position a step further by saying other nations are manipulating their currencies, a sign that the administration may get more aggressive with those trying to undercut the dollar.
Commodities 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 follow the example of China and open up hesitantly. DAX is about 30 points of profit for the moment, while UKX and CAC are around zero. The lack of economic news during the session suggests that traders and investors will focus on the Fed's statement, and the movement of US indices will predetermine the behavior of their European counterparts.
U.S. stock market: It took nearly 8 months, but the S & P 500 managed to recover from a 12% drop in the January-February period and reached a historic peak. The index shows good results and moves since the beginning of April, when it successfully tested the bottom of February. With US stocks at historical levels, the Chinese have a 20% drop on the threshold of a trade war. The question is what movement is the real .. Today we expect the Fed statement and Jerome Powell's press conference. He will focus on the future of interest rates in the country, noting to comment on the "fiscal friction" between him and Trump.
Economic calendar for the European and U.S trading sessions:
Tentative UK - Inflation Report Hearings
15:30 Canada - Retail Sales
17:00 USA - Existing Home Sales
17:30 USA - Crude Oil Inventories
21:00 USA - FOMC Meeting Minutes
Trader Aleksandar Kumanov Read more:
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