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- Varchev Finance: Trading day in one post – 28.08.2018
Varchev Finance: Trading day in one post - 28.08.2018
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Loading...Asian Stock market: Asia markets traded in mixed territory on Wednesday morning after Wall Street extended gains overnight — with the Nasdaq and S&P 500 hitting another record high — as trade fears eased. Japan's Nikkei 225 was up by 0.42 percent in morning trade, with the shipping sector continuing its move upward by 2.52 percent. South Korea's Kospi traded up as well by 0.15 percent. The ASX 200 was up 0.31 percent after trading largely flat earlier. Construction materials and building products supplier Boral's stock surged upward by 8.26 percent on the back of news that its full year net profit rose 48.5 percent to A$441 million ($324 million).
FX market: TRY is again trading under pressure as traders weigh Turkey's tireless efforts to lead negotiations and trade with the United States. In addition to all current problems, Turkish Finance Minister Berat Albayrak said trade sanctions against Turkey could destabilize the Middle East. After meeting with his French counterpart in Paris, Albayrak highlighted Ankara's hopes of better ties with Europe and headed to the United States, saying that US sanctions could eventually worsen the terrorist and refugee crises in the region. US President Donald Trump this month has ordered a doubling of customs duties on aluminum and steel imported from Turkey, which led to retaliation measures from Ankara. Technically, USD/TRY reports that there is a second upward wave. As usual, following a strong volatility of an instrument, the triangular formation was again present at TRY. The price is currently breaking down, going above the strong resistance level. Fibonacci also supports growth. In the last 2 weeks, the price has reached 50% Fibonacci correcting the last wave, then reversing up and forming a triangle. 50SMA and 200SMA are beaten and RSI remains over 50, but outside the over-purchase zone - the trend remains. Sequential counts 2 above - the impulse is still in force.
Commodities market: Investors in gold-traded gold-traded funds preferred to accumulate short positions over the past 13 weeks. This was dictated by the long period of decline in the precious metal for a number of reasons. The main reason for the collapse of the precious metal is the strong growth of the USD, and in addition, futures auctions and reduced demand for physical gold. We have not seen such a series since 2013 when gold has been subject to such a wave of sales. Given USD weakness signals, Trump's attempts to influence Fed policy will likely have a positive impact on the metal, expecting growth if not growth, at least retention of the price around the current levels. Technically, the price is far removed from support or resistance, as the current Price Action indicates that testing the area around 1200/1205 is the most likely scenario. There the precious metal will most likely last for a longer period of time.
European stock market: Today Euro indexes will start in positive territory after the strong performance of Asia. Today there are no major economic news from the eurozone, but traders are expecting a second-quarter GDP report in the United States. It will be published at 15:30 this time. I expect a positive and relaxed start and profitable trading during the first half of the session. However, in the afternoon, investors may be troubled, as disappointing US data + increased liquidity from US traders + the fact that the hour coincides with the end of a lunch break in London may confuse the stuff of intraday bulls in Europe.
U.S. stock market: The renewal of NAFTA (with some important changes) between Mexico and the U.S. marks an important political victory for the President and a potential change in his strategy. The political victory will support Republicans in the upcoming mid-term elections in November. Mexico is a crucial trade partner for many large American enterprises, which have integrated it in their supply chains. The deal will allow Republicans to show their caucus that their President (a Republican) always achieves the best for his country, despite his crude methods. The change in strategy can be a more important long-term signal. Trump may be trying to strengthen economic ties with US's traditional trading partners such as Mexico, Canada and the EU. This will allow the President to leverage an economic war against China, Russia and Iran, while still maintaining the economy and trade. This will solidify the US's position against its major economic foes. This means that the trade deal is a positive for Mexico but a negative for China. The renewal of NAFTA can serve as a base for the US to levy tariffs on the $200 billion in Chinese imports scheduled for September. Unless China completely shifts its stance on the economy and trade, it is unlikely we will see a truce between the U.S. and China.
Economic calendar for the European and U.S. trading sessions:
09:00 Германия - Потребителски Климат
15:30 САЩ - Брутен Вътрешен Продукт
17:00 САЩ - Чакащи Продажби на Жилища
17:30 САЩ - Петролни Запаси
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