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- Varchev Finance: Trading day in post 15.11.2017
Varchev Finance: Trading day in post 15.11.2017
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Loading...Asian Stock Market: Asian indexes traded down on Wednesday. Japan's Nikkei declined by 1.28%, Kospi wiped out 0.25% of its value. Australian ASX declined by 0.48%, with the most losing sector being the energy sector. China's markets have also turned red. Shanghai composite was down 0.71%, Shenzhen composite by 1.27% and Hang Seng by 0.74%.
FX market: USD continues to decline after speculation that the corporate tax cut will come into force in 2019. The EUR/USD pair officially failed in the performance of the H&S figure as it is currently traded at around 1.1790. Today we expect CPI data and retail sales in the country. We remain cautious towards USD. AUD: continuing declining. Following the news we saw earlier this evening on the wage index, the Australian currency fell below the key level of 0.7600 against the dollar. We remain negatively tuned to AUD. JPY: The yen has managed to return some of its losses against its main competitors. But maybe what we see is a profit taking from short positions against the yen. The currency fundamental has not changed as it remains negative. We will look for convenient places to enter short positions against JPY. TRY: According to most analysts, the Turkish lira is yet to be depreciated. Currently, the currency is traded at levels of 3.88 TRY per dollar, with expectations for the end of the year to reach 4.05 TRY per dollar. Inflation in the country has persistently exceeded 8%, which further aggravates the situation. We remain negative towards TRY.
Commodity market: Oil futures continue to decline. WTI lost 1.06% of its value and traded at 55.11 dollars a barrel, and Brent crude oil fell 1.19% to 61.47 dollars a barrel. According to the Energy Minister of the United Arab Emirates, "The price of black gold has risen too fast and too much". Today we are looking for data on US oil reserves that will have a major impact on the price of OIL GOLD: Still moving in tight consolidation around levels 1270-1290 $. For now, this price seems fair considering that there is no geopolitical uncertainty, and the dollar remains under pressure.However, we have to take into account that the price of gold is inversely influenced by the level of inflation in the US, and today we will see CPI data (the official inflation measure) in the US. We remain cautious about the metal.
European stock market: We expect European indexes to start with a downgrade session on Wednesday. DAX will open about 40 points lower at the price of 13,000. The French CAC 15 points fall in price 5305 and UKX 5 points lower at 7405. The moods to the European stock market remain positive over the medium term. As the ECB cuts QE and increases its interest rate, we think the banking sector in Europe will blossom. For now, the rule the "buy the dip." is still on-power.
US Stock Market: US indices closed the session on Tuesday with a decline. DJIA fell by 0.13%, S&P by 0.23% and Nasdaq by 0.29%. GE's shares fell 5.9% and reached a price unprecedented from 2011. Lower data than expected data from China, which we saw yesterday, served as a catalyst for Wall Street's downgrade, which is not a big surprise given that US indices are making new peaks almost every week... well sometimes we have to take the yield.
Economic calendar for the European and American trade sessions 15.11.2017
9:45 France - CPI
11:30 UK - Average earning + bonuses
11:30 UK - Claimant count
12:00 EU - Trade balance
14:00 USA - Mortgage market index
15:30 USA - CPI
15:30 USA - Retail sales
15:30 USA - NY Empire state manufacturing index
17:30 USA - Crude oil inventories
23:00 USA - TIC Net long-term transactions
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