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- Varchev Finance: Trading day in one post – 27.07.2018
Varchev Finance: Trading day in one post - 27.07.2018
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Loading...Asian Stock Market - Unlike Wall Street, shares on Asian markets were down. Despite the retreat of fears about the trade war, Asian traders chose to win profits and short positions as the EU-US agreement would not have a positive impact on the Asian region. Shanghai Composite fell 0.29%, Shenzhen by 0.45% and Nikkei 225 by 0.11%. Hang Seng and Kospi jumped by 0.09% and 0.55%, respectively.
FX Market - JPY was again in vogue, amid the fall in Asian markets and the ECB's expected meeting today. Given the latter, the EUR trades cautiously and without major change. This will not last long, as in the short range the traders have accumulated a large number of positions that will be multiplied after today's meeting. In view of the good development of the meeting between Juncker and Trump, I expect the ECB to be bolder in its plans to tighten monetary policy. If this is true, I expect EUR / USD to test the previous peak in the area around 1.1850. But it is more likely that the bank will maintain a soft tone and an even greater concern about the uncertainty surrounding the "trade wars". This position is unlikely to be a pretext for a repeat of the collapse in June but potentially will be able to cool the passions of EUR-bulls by sending EUR / USD in the trading range of 1.150-1.1750.
Commodity Market - Today's OPEC meeting, which investors expect. The meeting will hardly have a strong impact, but growing tensions in the Middle East will continue to support oil. Saudi Arabia's oil minister confirmed that after attacks on two Saudi tankers in the Bab el-Mandabah, his country would stop deliveries via the Suez Canal. About 4.8 million barrels per day of crude oil and refined petroleum products are expected to remain in oil companies and out of the market until tensions have subsided. GOLD remains static against the backdrop of rising US markets, but during the European session we can see stronger purchases.
European stock market - After the collapse of Facebook on the aftermarket, as well as the accumulated negativism during the Asian session, European futures indicate a strong negative start. In addition to negativism, investors expect the ECB's press conference to make it clear what kind of monetary policy the central bank will apply. DAX will start the session with the biggest change of 56 points lower. The CAC40 will open at 22 points and UKX 30. With the good end of the Trump-Juncker meeting, I expect these gaps to be filled in the first minutes of the interbank market.
US stock market - Dow jumped 172 points, while the Nasdaq technology rose 1.2 percent to All Time High after Alphabet, Facebook (before the report) and Amazon rose significantly. SP500 grew by 0.9%, ending the session at just under 1 point of record. Following the announcement of the news of the EU concessions, Caterpillar's shares climbed upwards and eventually ended the session with a growth of 1.8% with increased trading in the last minutes of the session. Ford shares almost managed to offset the earlier collapse after falling by over 4% at the height of the session.
Economic calendar for European and US trade sessions - 27.07.2018
The OPEC meeting still tentative
09:00 Germany - GFK consumer climate
14:45 Eurozone - Basic ECB interest rate
15:30 Eurozone - Press conference of the ECB
15:30 US - Orders for durable goods
15:30 USA - Jobless claims
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