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- Varchev Finance – Trading day one post 04.06.2018
Varchev Finance - Trading day one post 04.06.2018
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Loading...Asian stock market: Asian stocks traded higher on Monday, tracking gains seen on Wall Street after Friday's expectation-topping U.S. jobs report and shrugging off trade-related concerns. The Nikkei 225 made convincing gains, with the benchmark advancing 1.36 percent as most sectors rose. Automakers and shippers were among the best-performing sectors in the morning, with the broader Topix climbing 1.53 percent. Hong Kong's Hang Seng Index, meanwhile, jumped 1.32 percent as technology and financial shares led the move higher. Gains elsewhere in the region were moderate, with the Kospi edging higher by 0.52 percent in Seoul and the S&P/ASX 200 tacking on 0.71 percent in Sydney. The Shanghai composite edged up by 0.7 percent and the smaller Shenzhen composite tacked on 0.41 percent.
FX market: EUR/USD has held up pretty well despite this week's negative news flow, but a sell-on-rallies mentality will continue to reign in the near term. It's impressive the pair hasn't revisited the recent 1.1510/20 lows from earlier this week. Yet the probability of a fully-blown trade war is in store, and it would be unambiguously negative for the euro-area economy and currency. Ongoing political uncertainty in Italy and Spain will also keep the euro on the back foot, even with countries' bond markets on a tear in the past few days (albeit still above the one-year average in Italian 10-year yields' case.) The barriers to a longer-term reversal are high, as it will involve a concurrent improvement in regional politics and step back in global trade tensions. Euro bulls will have awhile to wait for that narrative to play out. For now, the best they can hope for is sideways price action.
Commodities market: Benchmark U.S. crude fell to the lowest level in more than a month on Friday, closing below its 50-day moving average. West Texas Intermediate settling below the key technical level is typically seen as a bearish signal for prices. Record U.S. output coupled with pipeline bottlenecks is leaving domestic oil trapped, weighing on prices.
European Stock market: Today European markets will follow the example of their Chinese counterparts and start the session with cautious gains. The indices, although they have not registered large profits, are in green. The lack of serious economic news casts the focus of all investors on the trade war speculations and the political turmoil in Italy. There is still hope in the face of the G7 summit at the end of the week, but it is obvious that Europe will be hit by tariffs that will cost TNCs (trans-national corporations) a lot, and thousands of jobs are threatened.
U.S. stock market: As has already become clear we are in war ... commercial! Last week, Donald Trump decided that Canada, the EU and Mexico would be subject to the import tariffs for aluminum and steel, and the answers and insistence on them were not missing. As the economic calendar is relatively empty from major news, next week the markets are likely to be driven by rumors about the trade, war and the upcoming meeting between Kim Jong Un and Donald Trump on June 12 in Singapore. For many of you, the outcome of this meeting will not be of major importance to the capital markets, but in this situation it is not so! That's why. For Trump, trade with China and the problems around North Korea are directly related. When the American president needed the help of his Chinese counterpart, Xi Jinping and Kim, he spared Beijing of the harsh business he promised during his election campaign. But when Kim talks, the president turned the gun's pistol to his.
Economic calendar for the European and U.S. trading sessions:
11:30 UK - Construction PMI
12:00 Europe - PPI
17:00 USA - Durable Goods Orders
Trader Aleksandar Kumanov Read more:
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