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- Varchev Finance: Trading day in one post – 28.05.2018
Varchev Finance: Trading day in one post - 28.05.2018
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Loading...Asian Stock Market - Expected Asian markets were trading against the backdrop of extremely low volatility and a decline, mainly due to the collapse of oil. Japan's Nikkei 225 declined by 0.12% and Topix by 0.27%. The markets in Australia and China have also not retreated. ASX200 declined by 0.51%, Hang Seng by 0.11%, and Shenzhen by 0.71%. Only in South Korea Kospi jumped 0.66% against the backdrop of geopolitical development over the weekend.
FX Market - In the first hours of the week, EUR and JPY were in the spotlight. The euro has retreated from last week's cuts and worries about the Italian government after the Italian president dismissed Paolo Savona as the country's finance minister. As a result, the populists have withdrawn the draft coalition. At first glance, a normal political environment, but in the case of very profound consequences in favor of the euro. At least in the medium term. The withdrawal of Five Stars from the efforts to create a government inspires hopes for the pro-European parties, and hence the fears surrounding the Italian debt are weakening. This in turn gives the ECB the freedom to cut QE next month. On the other hand, JPY is launching gambling in a downward trend after Trump said a state delegation had arrived in North Korea to negotiate a summit between him and Kim. CAD continues to lose positions by weighing out Bank of Canada's controversial monetary policy and falling oil prices. NZD and AUD mark rises against the backdrop of declining geopolitical tensions.
Commodity Market - Oil Runs All Applauses Return to oil extraction levels observed in October 2016, which are the basis of the current abstraction program, is one of the options to address the risks around Iran and the continuing upward trend, the Russian energy minister said, Alexander Novak. "Russia feels good with oil prices around $ 60 a barrel," Novak added. Saudi Arabia has already announced its plans and in June we will see an increase in extraction. According to Reuters, the other cartel countries, as well as Russia, are considering an increase in yields. Expected Saudi Arabia's decision led to domino effect, which in turn led traders to push the Sell button. We expect the decline in black gold to continue this week.
European stock market - Contrary to the Asian sentiment, European markets will start with rises. The German DAX will open 35 points higher at a price of 12,965 euros. The French CAC40 will open at 5546 euros or 8 points up. British UKX will register a 15 point increase, opening at a price of 7731 pounds.
US Stock Market - Last week for the week, US stock indices moved in different directions against a backdrop of loose trade. While the benchmark indexes recorded significant declines, the Nasdaq technology reported a minimal increase. There were no clear impulses before the extended weekend due to the holidays. Even weak internal economic data did not lead to a big move on Wall Street. The leading Dow Jones Industrial Index lost 0.24% to 24 753.09 points on Friday, following the trend of the previous day. The situation was similar for the S & P 500, which dropped 0.24% to 2721.33 points. However, the Nasdaq 100 Technology Index managed to add 0.13% to 7433.85 points. Weekly Dow is up 0.2%, Nasdaq is 1.1% up, and S & P 500 - 0.3%.
Today, at the European and US trading sessions, there are no important economic data that could have a direct impact on the FX or the stock market. On the other hand, the background around the Italian government and the continuing decline in oil will dictate today's moods. Today markets in the UK and the United States will remain closed. As the energy companies have the highest in the stock indices, I expect indexes in Europe to continue to decline by weighing down on oil. On the other hand, support for the stock will be the 180-degree turn of Donald Trump, who earlier today said a US delegation had arrived in North Korea to negotiate a summit between him and Kim Chen Un.
Trader Petar Milanov Read more:
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