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- Varchev Finance: Trading day in one post – 28.02.2018
Varchev Finance: Trading day in one post - 28.02.2018
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Loading...Asian stock market: Asian markets declined on Wednesday following a congressional testimony from the Federal Reserve's new chief. Losses in Asia, which were initially slighter than declines seen stateside, steepened as the session progressed. The Nikkei 225 declined 226.7 points, or 1.01 percent, paring some of its recent gains. The index slipped further into negative territory as the yen firmed during the session. South Korea's Kospi edged down by 0.86 percent as gains in tech heavyweight Samsung Electronics were offset by losses in automakers and manufacturing names. Samsung Electronics rose 0.42 percent amid a mixed tech sector. Over in Australia, the S&P/ASX 200 shed 0.72 percent, with just two out of its 12 sub-indexes in positive territory. Gold producers and telecommunications stocks were among the worst performing sectors while the heavily weighted financials sector slipped 0.55 percent. Hong Kong's Hang Seng Index fell 1.67 percent, driven lower by declines seen across sectors. Major financial stocks traded in negative territory, with heavyweights China Construction Bank and HSBC down 3.7 percent and 0.7 percent, respectively.
Currency market: The Bloomberg Dollar Spot Index was little changed. The Japanese yen rose 0.1% to 107.19 per dollar. The euro was steady at $1.2225. The Canadian currency remains among the strongest in the market. The high oil price supports the CAD seriously. Economic data from the country continues to be better than expected. The sentiment around CAD remains positive, as we will watch for hints from the President of the Central Bank for another increase in the interest rate this year. JPY: It's also among the strong currencies on the market ... but how long? Currently, BoJ is the central bank that has the most negative policy against its currency, and yet the JPY remains strong. We can assume that when stock indices move north again, JPY will lose positions, but for the moment the moods to the Japanese yen are positive.
Commodities market: WTI crude fell 0.6% to $62.62 a barrel. Gold fell less than 0.1% to $1,317.61 an ounce. Money managers are fleeing bullish bets on silver, this year’s worst-performing precious metal. Hedge funds and other large speculators cut their long position in silver futures and options for a sixth straight week in the longest string of declines since August 2014, U.S. government data Friday showed. The commodity has dropped 3.5 percent this year, bearing the brunt of concerns over rising bond yields and prospects for higher U.S. interest rates that curb the appeal of non-interest-bearing assets such as precious metals.
European stock market: European markets are set to open flat. German DAX will start trading 5 points lower at 12,424. French CAC and UK's UKX are without a change. Investors remain cautious with Italy's election behind the corner. Following Germany's vote in September last year, it's now the Italians who are headed to the ballot box this Sunday, with the outcome expected to be even messier than Berlin's — which, incidentally, is still being pieced together by Chancellor Angela Merkel and her coalition partners. Polls have pointed to a hung parliament where no one party will gain a majority to govern alone.
U.S. stock market: U.S. stocks fell for the first time in four days Tuesday after comments from new Federal Reserve Chair Jerome Powell sent rates higher. The new chair signaled the central bank could hike rates more than three times this year in an effort to keep the economy from overheating, sparking anxiety among equity traders. The Dow Jones industrial average fell more than 300 points Tuesday, with Disney and Home Depot weighing down the 30-stock index. The S&P 500 fell 1.2 percent as real estate, consumer discretionaries and telecommunications pulled the broader market lower. The Nasdaq composite also fell 1.2 percent amid declines in Facebook, Amazon, Apple, Netflix and Google-parent Alphabet. Jerome Powell addressed Congress on Tuesday, detailing the central bank's outlook for monetary policy and economic growth for the coming years. Asked about rate hikes in 2018, the Fed Chair signaled that the option for more than three increases remains open. Italy's fragile economy is why this election is so very different to Germany's and why many analysts singled out this vote at the start of the year as being a major a risk factor for 2018. Germany's political mess caused little distress in European stock markets in 2017, but Italy is a different prospect.
Economic calendar for the European and U.S. trading sessions:
09:00 Germany - Gfk Consumer Confidence Survey
11:00 Germany - Unemployment Rate
12:00 Europe - CPI
15:30 USA - Gross Domestic Product
16:45 USA - Chicago PMI
17:00 USA - Pending Home Sales
17:00 USA - Fed's Powell Speaks
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