- Home
- >
- Daily Accents
- >
- Varchev Finance: Trading day in one post – 25.07.2018
Varchev Finance: Trading day in one post - 25.07.2018
Rating:
Loading...Asian stock market: Asian markets were mixed on Wednesday, with benchmarks in Japan and Hong Kong tracking higher after Wall Street mostly advanced on the back of strong corporate results overnight. The Nikkei 225 traded higher by 0.4 percent in Tokyo, with the iron and steel sector leading gains in early trade. Mainland China stocks were narrowly mixed in the morning, with the Shanghai Composite lower by 0.16 percent after three consecutive sessions of gains while the smaller Shenzhen Composite moved higher by 0.09 percent. In Hong Kong, the Hang Seng Index climbed 0.44 percent to record more convincing gains as energy supported the benchmark. In Seoul, the Kospi slipped into negative territory as large cap technology stocks turned lower, with Samsung Electronics inching down by 0.11 percent. The index eased 0.19 percent as manufacturing plays rose while automakers and retailers declined. Elsewhere, the S&P/ASX 200 shed 0.35 percent as declines in health care and consumer staples led the move lower.
FX Market: The yen has stayed resolutely weak, becoming the weakest of the G10 developed market currencies this month. The yen's safe-haven status is not in doubt, underpinned by Japan's nearly two trillion yen ($18 billion) monthly trade surplus. But without a massive world market shock to discourage Japanese investors from buying foreign assets, the yen is likely to stay weak - above all because the Bank of Japan lags behind its central bank peers in ending monetary stimulus. Investors doubt the BOJ can aggressively reduce the stimulus measures as inflation remains well below target and corporate profits are recovering slowly. U.S president Trump's tweets, expressing displeasure over dollar strength and Fed policy, are piling on pressure on the USD with technicals signaling potential deeper declines. That Trump is showing concern over dollar strength is no surprise as it could negate his recent tariff measures but his criticism of rate hike may undermine the dollar-favorable U.S rate differential versus other countries. Since making a new one-year high at 95.53 in mid-June, the dollar index has struggled despite hitting a marginal new 95.65 high July 19 before moving sharply lower. Index players are now focused on the 93.908 23.6% fibo. A break and close below the 55-DMA at 94.16 would only add to bearish sentiment. CFTC headway now could see these positions trimmed. Friday's Q2 U.S GDP data is expected to be strong at 4.1% but anything less would hurt, as would any signs of potential fatigue in forward-looking data.
Commodities market: Military conflict between the United States and Iran would threaten to shut the world's busiest seaway for oil exports and send crude prices to all-time highs, perhaps even to $200 a barrel, according to one analyst. President Donald Trump on Sunday night warned Iranian President Hassan Rouhani on Twitter that his country would "SUFFER CONSEQUENCES THE LIKES OF WHICH FEW THROUGHOUT HISTORY HAVE EVER SUFFERED BEFORE" if Rouhani ever threatened the United States again. Trump appeared to be responding to comments over the weekend from Rouhani, who said, "Iran's power is deterrent and we have no fight or war with anybody but the enemies must understand well that war with Iran is the mother of all wars," according to an English translation on the Iranian president's official website. The rhetoric has been heating up as the first of two U.S.-imposed deadlines for international businesses to cut ties with Iran approaches next month. By November, the United States expects most oil buyers to reduce purchases of Iranian crude to zero, or else face U.S. sanctions.
European stock market: Investors have added a record $ 345 million bet to the banking sector in Europe. This comes as the region’s earnings season gets into gear and just before the UBS Group AG report. In addition, technical analysis at iShares MSCI Europe Financials ETF seems also strongly bullish. Fundamental logic can also be found in the fact that Europe can not escape the direction of tightening monetary policy, and this moment seems closer. If there are any signs of raising interest rates in the EU, the European banks will be the most profitable.
U.S. stock market: Chief Executive Officer of J.P. Morgan made a mixed review of President Trump's economic policy. "If other $ 200 billion of tariffs are imposed, I think we will come close to reversing some of the benefits that you have achieved in the economy," Dimon said. Second-quarter gross domestic product will be released on Friday, with expectations for 3.8% growth. This is an increase from the two percent reported in the first quarter. So far, the US has set tariffs for Chinese products for just $ 34 billion. The White House is undergoing a two-month review for the second round of $ 200 billion. Dimon believes Trump has "raised serious questions that are quite accurate" when it comes to dealing with China, but has questioned the next steps of the US president. "I would like to recall what Trump's team said:" There will be no vengeance. " "They were wrong," Dimon said.
Economic calendar for the European and U.S. trading sessions:
11:00 Germany - Ifo Business Climate Index
17:00 USA - New Home Sales
17:30 USA - Crude Oil Inventories
Trader Aleksandar Kumanov Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
