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- Varchev Finance – Trading day one post 01.06.2018
Varchev Finance - Trading day one post 01.06.2018
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Loading...Asian stocks pared early losses Friday to trade higher, even after the Trump administration’s tariffs on imports from key allies sent U.S. and European stocks into a tailspin. Shares in Japan, China and Hong Kong rose, while Korean equities outperformed on better than expected export data. Australian stocks lagged.
Investor focus returned to trade tensions, overshadowing reports that Italy is close to forming a government that is more EU-friendly than had been feared. The Trump administration’s unilateral action was met with retaliatory actions that could imperil economic growth. Traders are also bracing for Friday’s jobs report, with payrolls expected to rise and the unemployment rate seen holding at the lowest since 2000.
FX Market: The dollar continues it's raid, though concerns about trade and international affairs appeared in Fedspeak, with Fed Governor Lael Brainard saying she supports hikes with downside risks coming mostly from abroad. Fed Governor Randal Quarles said trade measures haven’t had a big macro impact yet; Cleveland Fed President Loretta Mester said that Italy hasn’t changed her view of the U.S. economy and she supports gradual hikes. The yen declined after the Bank of Japan cut purchases of some debt at its regular operations. The main driver for Euro today will be the series of PMI data that will be released by key economies for the region.
Commodity Market: Even as questions swirl over whether key producers such as Saudi Arabia and Russia will ramp up output later this year, oil options traders are betting that crude prices will only rise further.
Large volume was seen today in October Brent $100 call options, which expire in August. That signals some traders are betting prices will rise to that level during the summer. Front-month Brent futures are currently trading just below $78 a barrel. The prospect for silver looks grim. nventories of the metal, used in everything from jewelry to solar panels and appliances, have climbed to the highest since 1993, according to Comex data. Silver prices are down more than 5 percent in the past year as rising borrowing costs curb the appeal of non-interest-bearing assets, while the “big overhang” in inventories has kept investors on the sidelines, said Ryan McKay of TD Securities. The outlook should improve next year as mine supply peters out and demand picks up, he said. Gold remains the only unknown in the equation, despite the geopolitical tension, the asset defined as a safe haven remaining static under the psychological barrier of 1300$.
Hours before the start of the European session, Asian moods are shifting to Europe, and the futures of the major European indices managed to wipe out some of the losses; however, the main driving forces on the old continent remain trade rhetoric, political turmoil in Italy, and the PMIs of the leading economies.
U.S. futures pointed higher, while expecting a dynamic session across the ocean in first day of the month, US will release a series of economic data starting with Average Hourly Earnings, Unemployment Rate, Nonfarm Payrols and finishing with a manufacturing PMIs.
Economic calendar:
10:50 France - Markit Manufacturing PMI
10:55 Germany - Markit Manufacturing PMI
11:00 EU - Markit Manufacturing PMI
11:30 UK - Markit Manufacturing PMI
15:30 US - Nonfarm Payrols
15:30 US - Average Hourly Earnings
15:30 US - Unemployment Rate
16:30 Canada - Markit Manufacturing PMI
16:45 US - Markit Manufacturing PMI
17:00 US ISM Manufacturing PMI
20:00 US - Baker Hughes Oil Rig Count
22:30 CFTC - Speculative Net Positions
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