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- Varchev Finance: Trading day in one post 24.01.2018
Varchev Finance: Trading day in one post 24.01.2018
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Loading...Asian Stock Market: Asian markets are trading in mixed moods. Japan's Nikkei is down 0.76% as a result of the rising yen. The major technology companies in the country were leading the downgrade of the index. Sony declined by 4.75% and Nikon by 1.36%. Australian ASX reported an increase of 0.44%. Despite the fall in the share price of major mining companies in the country, Rio Tinto 0.39% and BHP Billiton 0.36%, the index's rise was driven by the financial sector. The Chinese markets were also not on the same page. Hang Seng wiped out 0.25% of its value, while Shanghai composite and Shenzhen composite rose 0.13% and 0.18%.
FX Market: USD is the weakest currency on the market at the moment. The dollar index, which measures the strength of the US currency against its major competitors, went below the psychological level of 90. The moods around the USD remain negative in the medium term. Although the FED will most likely raise the interest rate at least three times this year, investors are avoiding investing in the US currency. Support may be given by Mario Draghi's statement later this week, where we expect the ECB president's tone to be rather weakening the EUR. However, we may see profit taking from EUR/USD long positions and a USD increase. CAD: Remains relatively strong. The market has not yet priced another interest rate hike, and is likely to happen by the end of 2018. If the country's economic data keeps its positive tone and the economy continues to grow at a steady pace, BoC is likely to take a step towards tightening its monetary policy. A positive impact on CAD is also the high oil price, which contributes a large percentage of revenues to the economy of the country. We have a positive mood for the Canadian dollar. EUR is among the strongest currencies on the market. Investors expect the ECB to stop or significantly reduce QE by the end of the year, which in turn will give a strong boost to the EU economy in a positive direction. However, we should not forget that short-term corrections are possible where we can look for new purchases of EUR.
Commodities market: OIL: black gold futures indicate a rise in oil prices during the Asian session. Brent rose 4 cents and traded at $70.37 a barrel, and WTI added 12 cents to its value and traded at $64.89 a barrel. Stable global growth as well as reductions in crude oil production by OPEC led to a significant increase in the price of black gold. For the time being, the OPEC agreement expires at the end of 2018. We remain positive about OIL. b Still not able to break through its top reached on September 8, 2017. However, the price of precious metal refuses and falls. The weak dollar and low inflation in the US are the catalyst for the GOLD's high price. For the moment, the trend remains positive as a breakthrough over last year's peak may lead to new bullish impulses.
European stock market: European indices will open without major changes. The German DAX will start trading with a 2-point drop at a price of 13567 euros, the French CAC by 1 point lowering the price of 5537 euros. and the UKX with a 15-point decrease of 7721 gbp. The ECB meeting and M. Draghi's statement later this week will have a major impact on the strength of the EUR and hence of the indexes. Although the European benchmark trend is quite clear, it is possible to see corrective moves that will be used for new purchases.
American Stock Market: New Day and New Peak .. and for the 3 US Benchmarks. The DJIA has gone above the psychological level of $ 26,000, the S&P over $ 2800, and the Nasdaq is less than 50 points away from a $7,000 conquest. The US market is still driven by the fiscal reports for the fourth quarter of 2018. The smallest corrections is used for new purchases and for new tops. We remain positive towards the US indices.
Economic calendar for the European and American trade sessions 24.01.2018
10:00 France - Services PMI
10:30 Germany - Services and Manufacturing PMI
11:00 EU - Services and Manufacturing PMI
11:30 UK - Claimant count
11:30 UK - Average hourly payment
14:00 USA - Mortgage applications
16:45 USA - Services and Manufacturing PMI
17:00 USA - Existing home sales
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