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- Varchev Finance: Trading day in one post 26.04.2018
Varchev Finance: Trading day in one post 26.04.2018
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Loading...Asian Stock Market: Asia markets traded mostly higher on Friday, as investors watched for developments from the Korean peninsula. North Korean leader Kim Jong Un met South Korean President Moon Jae-in at the inter-Korean Summit for talks. That session followed after Wall Street saw gains, helped by strong quarterly results from some of the biggest U.S. companies. In Australia, the ASX 200 rose 0.29 percent in afternoon trade, with most sectors gaining. Energy and materials were up 0.29 percent and 0.51 percent, respectively. The heavily weighted financial sector, however, fell 0.65 percent as major banking names stumbled. Japanese stocks are almost halfway to a full recovery from a correction that at one point wiped out 15 percent of the market’s value. The Nikkei 225 Stock Average has climbed more than 8 percent since bottoming out from a rout that took the gauge from this year’s high of 24,124.15 on Jan. 23 to the low of 20,617.86 on March 23. The Nikkei 225 is set to complete a five-week gain, the longest winning streak since a nine-week advance ended on Nov. 10.
FX market: The Bloomberg Dollar Spot Index fell 0.1%. The JPY rose 0.1% to 109.19 per dollar. The EUR rose 0.1% as well. Whether a strong dollar is a good or bad thing remains highly debated among economists. But there is generally one consensus among them — it's important to look at why the dollar is moving. The greenback has jumped more than 1.5% against the yen and euro since last Monday. And it's made even bigger gains versus other currencies, including the New Zealand dollar and the British pound. Bilal Hafeez, a foreign exchange strategist at Nomura, thinks the greenback is rising for "bad" reasons. "US risk markets such as equities and credit have weakened over the same period while the dollar has rallied," he said. "The dollar is rallying in a negative environment." Though the dollar index — a measurement of the greenback versus its major peers — paused Tuesday, some think it will continue strengthening. The Federal Reserve is on track to raise rates two or three times more this year, which is relatively faster than the other major central banks. That could push rate differentials wider and further boost the dollar, according to FXTM Chief Market Strategist Hussein Sayed. "Unless President Trump surprises us with a new Tweet, we may see further greenback appreciation," he added. But that's all the more reason to trade in US dollars for so-called safe haven currencies, according to Hafeez. "In such an environment, we think the best way of holding onto a core short dollar position would be to sell it against the yen," Hafeez said.
Commodities market: WTI crude fell 0.3% to $67.97 a barrel. Gold rose 0.1% to $1,317.50 an ounce. Undoubtedly, oil prices have been volatile in recent months, but according to Michele Della Vigna from Goldman Sachs, the oil industry is entering an age of aging rather than expanding. According to Vigna, "the constraint" is observed in the investment sphere, and this will create a gap between production in the coming years. Consolidation is inevitable in this case. It is important to note that not only Goldman is of the opinion. Much of Wall Street's commodity analysts believe that the lack of investment in the sector could seriously hit the industry and later consumers. Vigna added that while demand for oil is at record levels, the sector needs growth in production as soon as possible. At present, all investments in the sector are short-term. A perfect example of this is the shale deposits. Only the group called "seven sisters," which includes Shell, Total and BP, have invested in long-term projects, he said. "This leads us to a very tight market in 2020, when we will rely seriously on OPEC.
European stock market: Today, European indices will open with virtually no changes. The German DAX has an 8-point increase at around 12,564; the French CAC is unchanged and UKX loses 10 points. The reason for the lack of momentum as it is in the movements of the United States and Asia is the euro. Mario Draghi once again failed to impress the traders, and the dollar recorded one of his better days against the common currency. Uncertainty about the future of monetary policy hampers investors and their planning. Today we expect gross domestic product data in the UK to give a clear idea of how the country's economy is doing through Brexit's shadow.
U.S. stock market: Stocks rose sharply on Thursday, helped by strong quarterly results from some of the biggest U.S. companies. The Dow Jones industrial average traded 300 points higher, with Visa as the best-performing stock in the index. The S&P 500 gained 1.4 percent as tech rose 2.6 percent. The Nasdaq composite rose 1.9 percent. Facebook shares surged nearly 10 percent after the company posted better-than-expected earnings and revenue for the first quarter. The company's number of daily active users pointed to steady engagement in the platform despite backlash from the Cambridge Analytica debacle. Advanced Micro Devices also posted earnings that topped expectations, sending its stock up about 13 percent. Chipotle, meanwhile, soared 24.6 percent after reporting a stronger-than-expected profit, boosted same-store sales that easily topped expectations. "There are two things driving the market: Earnings and the news flow out of Washington," said Randy Frederick, vice president of trading and derivatives at the Schwab Center for Financial Research. He noted that earnings may be currently overshadowing the news out of DC. "The earnings reports have been good thus far," Frederick said. "I see no reason why that wouldn't continue."
Economic calendar for the European and U.S. trading sessions:
09:00 Germany - Import Price Index
10:55 Germany - Unemployment Rate
11:00 Europe - ECB's Mersch Speaks
11:30 UK - GDP
12:00 Europe - Business Climate
15:30 USA - GDP
17:00 UK - BoE Gov Carney Speaks
17:00 USA - Michigan Consumer Sentiment
18:00 Canada - Budget Balance
20:00 USA - U.S. Baker Hughes Oil Rig Count
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