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- Varchev Finance: Trading day in one post – 30.05.2018
Varchev Finance: Trading day in one post - 30.05.2018
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Loading...Asian Stock Market - Asian stocks have fallen below a key technical support level, a bearish sign for the region’s shares. The MSCI Asia Pacific Index dropped below its 200-day moving average Wednesday morning, the first time in almost two years, putting it at risk to snap its bullish streak one session shy of 500 consecutive days. Risk assets are suffering this week as concerns about the repercussions of Italy’s political turmoil and the renewal of trade tensions between the U.S. and China have grip financial markets.
FX Market: Brexit has finally begun to have a direct impact on Britain's economy. UK Gross Domestic Product continues to show slow growth patterns on an annual basis. At second reading the increase in the economy in the first three months of the year is 0.1% compared to the previous quarter. This is the weakest growth since the end of 2012, when the country's economy shrunk by 0.1%. On an annual basis there is also no change - 1.2%. The pounds reported a significant decline and, as far as investors are concerned, what they expect to see is improving economic data after the weak first quarter of 2018. If there is a breakthrough in retail sales, it will support pounds and raise expectations that the British Central Bank may raise interest rates in August. Currently, market participants weigh the probability of Bank of England's interest rate increase to 51% in August. For comparison, before the last meeting of the bank this percentage was 62%. Turkey’s currency strengthened the most in the world Monday after the central bank sought to bring clarity to an interest-rate regime that had been muddied by a preponderance of benchmarks. Policy makers’ efforts to simplify the rates jumble provided some respite to the lira, which is among the worst performing emerging-market currencies this month.
Commodities market: A year-long rally for oil prices has hit a major speed-bump with both Brent and West Texas Intermediate continuing to fall following Friday’s announcement by Saudi Arabia and Russia that they’re discussing easing output curbs. The moves come as record U.S. crude production and a surprise gain in inventories pushed WTI’s discount to Brent past $8 a barrel, the most in more than three years, making American grades more affordable to buyers, especially in Asia.
European stock market: European markets have hit hard, as the renewed risks in Italy and Spain weigh the indices. Today's expectations are for light losses at the start of the session, with news in Germany immediately drawing the way for the day. Data on Retail Sales, Unemployment Change and CPI - 3 major health indicators for the world's fourth-largest economy are expected.
U.S. stock market: US stocks were down on Tuesday after political uncertainty in Italy sent the euro down, and continuing difficult talks in China did not serve the indices. Banking shares experienced the strongest damage. Today's session will receive data on ADP Employment Change and Gross Domestic Product, which will be of fundamental importance for index movements. Despite the negative sentiment, good results here can inspire investor confidence.
Economic calendar for the European and U.S. trading sessions:
09:00 Germany - Retail Sales
11:00 Germany - Unemployment Change
Tentative Germany - CPI
15:15 USA - ADP Nonfarm Employment Change
15:30 USA - Gross Domestic Product
15:55 USA - Redbook
17:00 Canada - BoC Interest Rate Decision
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