Asian Stock Market: Asian stock indices are trading in red territory. Japan's Nikkei is down 0.33%, Topix is 1.25% down. Australian ASX declined by 0.07%. China's markets have also joined the global dip. Shanghai composite was 0.67% down, and Shenzhen composite lost 0.77% of its value. Chinese industrial companies reported a 25.1% increase in earnings over the past quarter. These news are fundamental to AUD, which is the main importer of raw materials in the country. We expect an increase in the Australian currency in the coming weeks.
Forex market: USD remains under pressure. The US currency went above the psychological level of 1.19 against EUR last week, and despite some bankers' comments that the Fed will raise the key rate four times in 2018, the greenback is currently not supported. Today, we expect sales data for new homes to be above expectations. The reason for this is that the hurricanes that hit the US are still affecting these statistics. Later this week we will also see data on the country's gross domestic product, as data above expectations will increase speculation about aggressive FED. EUR: For the moment, the euro remains a dominant market power. Expectations that a coalition in Germany will still have a positive effect on the common currency. We remain positive to EUR. CAD: The Canadian dollar continues to weaken. The last few weeks of economic data from the country are lower than expected, which reduces the chance of an increase in the interest rate. The currency is likely to receive support if agreement is reached on 30 November at the OPEC meeting in Vienna and the price of oil rises.
Commodities market: OIL: after the volatile past week, oil futures show weakness at the beginning of the week. Brent dropped 0.14% to 63.77 dollars a barrel and WTI dropped 0.42% to 58.71 dollars a barrel. Oil speculators and investors should not forget about the forthcoming OPEC meeting later this week. We expect the volatility of black gold to continue to rise. GOLD: Still moving in the consolidation 1295$-1260 $. For now, precious metal has no direction, and it will probably not change soon unless we see an aggressive FED or North Korean action.
European stock market: European stock benchmarks will open down on the first day of the week. The German DAX is down 20 points, the French CAC drops 7 points and UKX 15 points down. Today we expect high volatility during the session. The reason for this is that we will probably see the outcome of the German coalition negotiations. For the moment, the situation looks promising, which will lead to a serious rise in the German index. Still, we should not forget that negotiations can always go wrong and DAX can plunge.
American Stock Market: US futures started the week negative. Once new tops are reached, perhaps it is now a time for correction of the indices. But most likely, the correction will be used for new purchases. The US economy is developing well, steadily at a moderate pace. GDP has grown to 3% + over several months, indicating that growth is not short-lived. We expect information about Trump's tax reform and when corporate relief will come into effect. The most beneficial from the tax cut will be the banking sector where it is wise to target our investments.
Economic calendar for the European and American trade sessions 27.11.2017
10:15 Switzerland - Employment rate
17:00 USA - New home sales
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