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- Varchev Finance: Trading day in one post 29.11.2017
Varchev Finance: Trading day in one post 29.11.2017
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Loading...Asian stock market: Asian markets traded mixed on Wednesday, but mostly shrugged off North Korea's latest missile launch. North Korea on Wednesday local time launched a likely intercontinental ballistic missile that landed in the Sea of Japan, according to the Pentagon. The launch, the North's first since Sept. 15, came after the U.S. classified North Korea as a country that supported terrorism on Nov. 20. Following the launch, President Donald Trump said the U.S. would "take care of" the situation. Japanese Prime Minister Shinzo Abe and Trump have also agreed to increase their cooperation on the North, Reuters said, citing Japanese media. North Korea later boasted through local media that its new ICBM was capable of reaching the U.S., but the rogue nation claimed its weapons program would not threaten countries that did not infringe on the North's sovereignty. Japan's Nikkei 225 shrugged off the North's latest missile launch to rise 0.31 percent. Major exporters were mixed as the dollar held onto overnight gains against the yen, with automakers mixed, but tech names mostly higher. Trading houses and financials notched gains. Across the Korean Strait, the benchmark Kospi index was little changed, trading higher by 0.01 percent as several blue-chip tech names declined. Heavyweight Samsung Electronics lost 1.2 percent while companies that have been sensitive to developments related to the THAAD anti-missile system traded mixed: Lotte Shopping fell 2.11 percent and LG Household and Healthcare advanced 0.08 percent. Down Under, the S&P/ASX 200 was 0.43 percent higher, with heavily-weighted financial stocks climbing 0.66 percent. Sector-wise, utilities and retail names traded higher.
Currency market: The Bloomberg Dollar Spot Index was steady. The yen was little changed at 111.47 per dollar. The euro was at $1.1849. Strong growth in GBP following a report published by Daily Telegraph, which indicates that Britain and the EU have reached Brexit agreements. The report makes it clear that the amount that Britain has to pay for leaving the EU remains within the range of €45 billion to €55 billion. So far, exit costs have been a major stumbling block to Brexit Deal and an agreement will pave the way for the next stage of the negotiations. Since the publication of the GBP/USD report, it has risen by more than 100 points, with investors' expectations remaining strongly positive for the cable. Bitcoin surpasses $10,000 for the first time. The digital currency hit $10,000 Tuesday, according to CoinDesk, marking an exponential ascent from 6 cents seven years ago and less than $1,000 at the start of this year. The cryptocurrency actually jumped as high as $10,038.83, according to CoinDesk, before edging down slightly. Since bitcoin's market capitalization is less than $200 billion, enthusiasts point out the digital currency could rise dramatically if it draws even a tiny fraction of the world's $200 trillion in traditional financial market assets. More than 120 "cryptofunds" have launched, including some run by Wall Street veterans, according to financial research firm Autonomous Next. In another move towards establishing bitcoin's legitimacy as an asset class, the world's largest futures exchange, CME, is planning to launch bitcoin futures in the second week of December.
Commodity market: WTI crude fell 0.5% to $57.68 per barrel, down for a third day. U.S. industry data showed crude stockpiles expanded before OPEC meets to decide on prolonging supply cuts past the end of March. Crude oil prices finished higher last week in an abbreviated session on Friday, with the U.S. benchmark surging to its best level since July 2015, as the shutdown at North America's Keystone pipeline continued to cut deliveries to storage facilities. U.S. West Texas Intermediate (WTI) crude futures rose 93 cents, or around 1.6%, to end at $58.95 a barrel by close of trade, levels not seen since the summer of 2015. Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., tacked on 31 cents, or roughly 0.5%, to settle at $63.86 a barrel. For the week, WTI gained about 4.2%, while Brent marked a climb of about 1.8%. The OPEC-led production cuts have been one of the key catalyst supporting the recent rally in oil prices amid expectations that rebalancing in crude markets are well underway. Market participants will focus on the Organization of Petroleum Exporting Countries highly-anticipated meeting on Thursday to see whether major producers plan to extend their current production-cut agreement. Most market analysts expect the oil cartel to extend output cuts for a further nine months until the end of next year in a bid to reduce global oil inventories and support oil prices. Energy traders will also eye fresh weekly information on U.S. stockpiles of crude and refined products on Tuesday and Wednesday to gauge the strength of demand in the world’s largest oil consumer.
U.S. stock market: Stocks finished at record highs on Tuesday as the Senate took a step toward passing a bill aimed at reforming the U.S. tax code. The Dow Jones industrial average closed 255.93 points higher at 23,836.71, with JPMorgan Chase leading advancers. The S&P 500 jumped 1 percent to 2,627.04 as financials climbed 2.6 percent; the sector also had its best session since March 1. The Nasdaq composite gained 0.5 percent, closing at 6,912.36. The Russell 2000, which tracks small-cap stocks, outperformed, rising 1.5 percent. The major indexes briefly pared gains after North Korea fired a missile that landed in the waters off the coast of Japan. Tuesday marked the first time since mid-September that North Korea launched a missile. The advancement is helping to boost the dollar and stock markets. Supposedly the final bill will include some kind of trigger that raises taxes on individuals and companies if growth targets aren't hit. So taxes will rise if growth is soft, which is just a really stupid idea. In any case, the bill will now head to the Senate floor. It can afford 2 Republican votes against it or perhaps more because there is talk that 2 Democrats could support it.
European stock market: Today european markets will open slightly changed. German DAX will start around 13,113 - 2 points lower; French CAC is with 4 points loss at 5,415; UKX is also with 4 points lower at 7,434. Today traders will watch the German CPI data, as it will show the development of the inflation in the forth biggest economy in the world. Also, at 19:00 we expect the speech from the president of Bundesbank. As such, and as a member of ECB, he can cause change in the short-term trend of the common currency. Regarding Brexit, Britain's major banks would be able to withstand a "hard Brexit" scenario, according to the Bank of England's (BOE) annual stress test of the U.K. financial system. In the BOE's latest report published Tuesday, the Bank found the U.K.'s seven-largest lenders would be able to continue lending even if Britain were to abruptly leave the European Union (EU) in 2019. The test — the fourth annual assessment conducted by the BOE — found Britain's major banks were all resilient to a scenario more severe than the global financial crisis. We can expect an increase in GBP and UK bank stocks, and look for profits from long positions.
Economic calendar for the European and U.S. trading sessions:
12:00 Europe - Consumer Inflation Expectations
15:00 Europe - German CPI
15:30 USA - GDP
16:00 UK - BoE Gov Carney Speaks
17:00 USA - Fed Chair Yellen Testifies
17:30 USA - Crude Oil Inventories
19:00 Europe - German Buba President Weidmann Speaks
19:45 USA - FOMC Member Williams Speaks
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