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- Varchev Finance: Trading day in one post – 27.03.2018
Varchev Finance: Trading day in one post - 27.03.2018
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Loading...Asian Stock Markets - Asia's main indexes were on the rise as US Treasury Secretary Stephen Mnuchin said a deal with China was fully achievable, and Peter Navarro expressed great hopes for the NAFTA agreement to be renegotiated without the US putting large damages to their neighbors and, at the same time, to achieve fair trade. The main winning sectors in Asia were technological and automotive. We expect the positive moods to be preserved during the European stock market.
FX Market - The economic calendar is not particularly exciting today, and for this reason the FX market will rely on White House decisions and Brexit talks. Taking into account the likelihood that the US and China will sit at the negotiating table, we expect the JPY weakness to remain, while NZD and AUD will continue to grow. Today, albeit unofficially, investors expect some comment from China about Kim Jong Un's visit to the country. If the Chinese authorities confirm North Korea's denuclearization talks, the JPY will likely collapse, reflecting the fall in tension in the region. Peter Navarro's comments on NAFTA and the strong oil continue to give the Canadian strength, and in the circumstances, the best trade can be found in CAD / JPY. USD weakened against most major currencies and reached the last defense line against the euro, where we can expect a big fight between bulls and bears, hence high volatility.
Commodity Market - WTI launches trade with promotions, currently trading at 0.50% higher. GOLD continues to chase the tops amid the declining US dollar, high US inflation and Hawkish mood among Fed members. Despite the temporary positivism of stock markets, investor concerns remain and demand for Safe Haven remains in vogue. We expect the precious metal to continue to rise, and by the end of the week we have to observe a new peak.
European stock market - Expectedly, markets in Europe will reflect the positivism gained on Wall Street and in Asia. The German DAX will start upwards of 50 points at a price of around €11,968. The French benchmark CAC40 will start trading 15 points higher at a price of €5,125. UKX will also see an increase on opening at 20 points higher at a price of 6968 pounds. Today, the economic calendar does not contain news of cardinal significance for European and US stocks, and investors will therefore focus their attention on Tramp and China's comments on tariffs, as well as on the UK, for possible progress on the Brexit deal.
US Stock Market - During the US session, the focus will remain on the White House and the government's comments on tariffs and negotiations with individual countries. Earlier yesterday it became clear that Trump still wants to negotiate with China, and Mnuchin has confirmed that the US can make a bargain for both sides. Today, the stock market will be hungry for clarification on Washington's specific intentions, as well as for China's response. If China agrees to negotiate, we expect the indices to continue. The Dow and S & P 500 futures ended the first session of the week with surge in key support levels, and it seems purely technical that the adjustment is over. If so, it remains to be seen. We stay long on the indices, using any correction to add to the long positions.
Economic Calendar for European and US trade sessions:
11:30 United Kingdom - Monetary Policy Committee report
12:00 Eurozone - Business climate
17:00 USA - Consumer Confidence
18:00 USA - Speech by Raphael Bostic, member of the Fed
23:30 US - API Crude Oil Inventories
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