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- Varchev Finance: Trading day in one post 27.10.2017
Varchev Finance: Trading day in one post 27.10.2017
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Loading...Asian Stock Market: Asian markets rose in Friday trade as the euro extended losses after Thursday news from the European Central Bank. That followed U.S. stocks closing mostly higher and then several big name tech companies reporting expectation-topping results. Friday morning saw the Nikkei 225 tack on 0.94 percent as the dollar strengthened. Most tech stocks, automakers and financials climbed during the session. Core consumer prices in September increased 0.7 percent compared to a year ago, government data showed. Consumer prices rose 0.2 percent if the effect of fresh food and energy was removed. Across the Korean Strait, the Kospi rose 0.49 percent with manufacturing stocks notching strong gains in the session: Samsung Heavy was up 4.5 percent, Hyundai Steel rose 2.93 percent and Samsung Engineering gained 4.18 percent. Down Under, the S&P/ASX 200 traded 0.03 percent above the flat line with the energy sub-index leading gains on the broader index. Oil Search rose 1.23 percent, Beach Energy jumped 2.12 percent and Origin Energy gained 1.95 percent. The Hang Seng Index surged 1 percent as investors digested quarterly earnings reports from China Life Insurance and China Construction Bank. CCB shares traded in Hong Kong rose 3.84 percent despite the 4.1 percent increase in third-quarter profit missing a forecast 6.1 percent rise in a Reuters poll. Most property stocks notched gains. Mainland markets were mixed: The Shanghai Composite was up 0.35 percent and the Shenzhen Composite was off 0.024 percent.
Currency Market: The not best kept secret plays out with the price of the EURUSD testing the 100 day MA and the lows from August and earlier this month. The 100 day MA is at 1.1675; The low this month stalled at 1.1668; The low from August stalled at 1.1662. The low just reached 1.16741. Of course the daily chart, also looks a lot like a head and shoulders formation. Technically, a break of the neckline targets the distance from the neckline to the top of the head (green dashed line). That distance would imply a fall that basically targets the 200 day MA (green line at 1.1242. Now many a head and shoulders have formed, been broken and did not go anywhere near the projected target. However, if the lows and MA is broken (and the neckline too), that is a bearish move technically. There should be more selling as long as the price stays below the broken levels. Along the way there will be interim targets that will be hurdles to get to and through. If the steps can be taken, the measured target may be reached. However, understand, there will be many a step from 1.1662 to the 200 day MA at 1.1242. Technically, the USDCAD continues to march higher and further away from the 100 day MA. The next targets off the daily chart, come in at the 1.2859 level (just a few pips away from that target now). Sellers may look to take a little profit here with stops on a break higher. If the bulls keep the pair running higher, the 1.29268 level becomes a key target. That level represents the 50% of the move down from the May 2017 high (see chart above). Making that area even more alluring is that the July hike was on July 12th and on that day, the high price stalled at 1.2939 - not too far from that 50% level.. If the bullishness can continue, I would think that would be a pretty good level to stall the climb (or fall in the CAD). Right now, the bulls remain in control with a test of the 1.2859 level looming.
Commodities markets: U.S. gasoline imports for the week ended Oct. 20 collapsed to the lowest level since 1999 while exports rocketed to the highest since January, according to data from the EIA report released on Wednesday. Rising gasoline shipments abroad contributed to a 5.47 million barrel decline in domestic inventories. Overall crude and products exports hit a record 7.66 million barrels a day in the week, as West Texas Intermediate continues to sell at a discount to Brent, the global benchmark. WTI crude was steady at $52.68 a barrel, the highest since April. It advanced 0.9% on Thursday when Saudi Arabia's Crown Prince Mohammed bin Salman said that "of course" he wanted to prolong the OPEC curbs beyond the end of March 2018. Gold was at $1,267.54 an ounce after it dipped 0.8% in the previous session.
European Stock Market: The positive sentiment from the late hours will spread over the last trading session of the week in Europe. The lower EUR benefits the stocks, as the indices of the major bourses, as they will open with gains. UK's UKX will open 5 points higher at around 7,487. German DAX will jump start the session with 42 points around 13,199 and French CAC will gain 14 points to 5,478. Cards are in play for a strong end of the week, as today the markets will probably make new record highs. The big names, set for Q3 earnings report include TAG Immobilien AG, FinTech Group AG, Capital Partners and others.
U.S. Stock Market: U.S. stocks closed higher on Thursday as the latest set of earnings reports gave investors a positive surprise. The Dow Jones industrial average rose 71.40 points to close at 23,400.86. Nike led advancers on the Dow, rising 3.4 percent to add to its Wednesday gains after the company raised growth targets at its investor day. The S&P 500 gained 0.13 percent to finish at 2,560.40. Union Pacific rose 5.7 percent after the company reported better-than-expected quarterly earnings and was S&P 500's best-performing stock. The Nasdaq composite fell 0.1 percent to 6,556.77.
Economic calendar for the European and U.S. trading sessions:
09:00 Europe - German Import Price Index
09:45 Europe - French Consumer Confidence
10:15 Europe - ECB's Praet Speaks
15:30 USA - Gross Domestic Product
17:00 USA - Michigan Consumer Sentiment
17:30 USA - ECRI Weekly Index
20:00 USA - U.S. Baker Hughes Oil Rig Count
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