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- Varchev Finance: Trading day in one post – 23.01.2018
Varchev Finance: Trading day in one post - 23.01.2018
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Loading...Asian stock market - Major Asian indices rose on Tuesday, after strong Wall Street growth stemming from the agreement reached to end the government's US break. Investors also expected the Bank of Japan's interest rate decision, and as expected, the bank did not change its monetary policy. Japan's Nikkei 225 grew 0.89% after barely closing the positive territory in the previous session. Automobile companies made profits during the Asian session: Toyota grew by 0.55%, Honda jumped 1.98%, and Mitsubishi Motors reached 1.71%. In South Korea, car companies were also top deals for the day, and this helped Kospi add another 0.94% to its value. The ASX200, the Australian benchmark, rose 0.74%, with the main driver being the energy sector. Positive moods were also observed in major markets in China. Hang Seng rose 0.94%, with HSBC (+ 0.65%) and Construction Bank of China (+ 0.99%) the top day. Shanghai composite rose 0.79% and Shenzhen by 0.17%.
FX Market - USD is mainly traded unchanged compared to its competitors. Weak movements in the green currency are mainly due to investors' caution towards the US dollar. Concerns concern the provisional budget decision. Late last night, Senators voted for the short budget, until 08.2.018, after which we expect the drama about the issue of illegal immigrants to run again and weigh on the USD. JPY is again in the spotlight with a growth of 0.12%, mainly due to the weak dollar and Bank of Japan's decision not to change interest rate policy. AUD traded with the largest decrease of -0.35%. The reason for the downturn is that Trump wants to pass a law that would end China's supply of solar cells to the US. EUR is traded in a narrow range, mainly because of worries about the new government talks. We expect caution towards the euro to be maintained until it becomes clear what is going on in Germany.
Commodity market - WTI rose 0.1 percent to $63.95 a barrel. OPEC and non-oil countries, or so-called "OPEC +" have agreed to continue the restrictions on the extraction of the raw material. After talks, attitudes are the limitations to continue, Saudi Arabian Energy Minister Khalid al-Falih reports. And if market imbalances persist, OPEC + may extend the agreement in 2019, he said. Formally, the talks on quotas and the possibility of extending for another year will be held in November 2018. Russian Energy Minister Alexander Novak commented before the meeting that he expected a balanced market in 2018. When this happens, "time will show," he said. Gold remained unchanged at $1,331.07.
European Stock Market - Expected European markets will start trading reflecting the positivism gained during the US and European stock market sessions. The German benchmark, Dax 30, will start trading upwards of nearly 50 points, but the uncertainty generated by the coalition misunderstanding will remain. We expect investors to remain cautious. The French Cac40 will start trading nearly 10 points higher, at around 5562 levels. The British UKX will appear to open without a special price change of 7735 pounds. The Central Bank of Europe is widely expected to keep interest rates at their current record lows during Thursday's meeting. Mario Draghi will make a statement 45 minutes later. The main focus will be whether the ECB thinks the recovery of the eurozone is strong enough to end the QE September program. Until we see the decision after the report, we remain cautious with both the EUR and the indexes given the increase.
US Stock Market - The news of several billion dollar acquisitions helped the US indices reach the All Time High. Meanwhile, the US Senate has reached an agreement on temporary administration funding until February 8, after Democrats agree to a compromise to halt the paralysis of federal agencies. As a result, the S & P 500 reached a new record as well as the Nasdaq 100 technology. The benchmark Dow Jones at a later stage. In the pharmaceutical, biotech and insurance sectors, companies "spend more and more" to boost their business through acquisitions. This continued to encourage share prices and eventually the S & P 500 added 22.67 points, or 0.8%, to 2,832.97 points. Nasdaq Composite grew by 71.65 points, or 1 percent, to 7 408.03 points, encouraged mostly by the growth of biotech companies. For Dow Jones Industrial Average, the increase was 142.95 points, or 0.6%, to 26 214.67 points. So all three benchmarks ended their sessions on Monday at record high levels.
Economic calendar for European and US stock markets
12:00 Germany - ZEW current conditions
12:00 Germany - ZEW Economic Expectations
17:00 US - Richmond Production Index
17:00 Eurozone - Consumer Confidence
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