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- Varchev Finance: Trading day one post – 14.03.2018
Varchev Finance: Trading day one post - 14.03.2018
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Loading...Asian Stock Market - The dismissal of US Secretary of State Rex Tillerson has lowered markets in Asia. In Japan, the Nikkei 225 fell 0.84% and Topix by 0.42%, with most of the sectors traded down. In South Korea, Kospi declined by 0.41%. In Australia, the ASX200 wiped out 0.81% of its value despite the profits of Rio Tinto and BHP. Expectedly, the Chinese markets were the most declining, as US changes most affected Chinese companies. Hang Seng wiped 1.25%, Shanghai composite 0.59% and Shenzhen -0.53%.
FX Market - USD, as well as the entire FX market is driven by another unplanned Trump movement. The Dollar Index is trading at a 0.1% decline, reflecting the White House redundancies. Against all this, the JPY completely overlooks the BOJ efforts and marks an increase of 0.1% over most of the major currencies. Earlier today, Bank Of Japan has published the report since the last meeting of the bank, and the new one is that for the first time some of the members mention a change in interest rates to higher, as economic data continues to improve. This, along with the negative sentiment of the stock market, makes the yen quite attractive to investors. CAD: The Canadian dollar is under pressure after tariffs on imports of steel and aluminum in the United States. Canada's largest market is their southern neighbor and these tariffs have a serious impact on the Canadian economy. The oil downturn further exerts pressure on the Canadian currency.
Commodities market: Gold does not reflect political concerns, and its movement during the Asian session is anemic + 0.08%. Even the weak dollar failed to pick up the metal, as most investors expected. Today we expect US retail sales data, with better data supporting a downgrade of the metal, and worse would hardly have a positive impact. WTI - Oil continues to decline, given that global demand is failing to absorb the strong growth in US stocks. Stocks have been on the rise for a long time, and the bulls on the oil market are worse than the EIA statement, which made it clear that large shale fields will increase production by another 131,000 barrels per day in April.
European stock market: European indices will start the session without major changes. The German DAX30 will start 5 points lower at around € 12,148. The French benchmark CAC40 will open up 3 points higher at a price of € 5219. British UKX will start trading downhill by 5 points at a price of 7,112 pounds. Today, during the European session, we expect the CPI data from Germany at 09:00 and Mario Draghi's speech at 10:00. But investors will turn their attention to the US, and news from the old continent will hardly have a strong impact on the indices.
US stock market - US indices ended trading on red territory after stock prices fell, reflecting concerns that tensions in trade relations between the US and China could rise. Dow Jones Industrial Average wiped out 171 points, while at its peak during the session it grew by 197.79 points. Microsoft's shares were one of the worst performing in Dow, retreating by 2.4%. The broader S&P500 index fell 0.6 percent and technology companies fell 1.2 percent. Technological Nasdaq Composite finished the day 1% down and ended its 7-day growth to All Time High levels. Qualcomm shares were the worst performing in the S&P500 -5% technology sector. This happened after US President Donald Trump blocked Broadcom acquisition of the company, citing concerns about national security.
Economic calendar for European and US trade sessions - 14.03.2018
09:00 Germany - CPI
10:00 Eurozone - Speech by Mario Draghi, President of the ECB
10:45 Eurozone - Speech by Peter Praet, Member of the ECB
12:00 Eurozone - Industrial Production
12:45 Eurozone - Speech by Vítor Constâncio. Member of the ECB
13:20 US - OPEC Monthly Report
14:30 US - Retail sales
14:30 USA - Production index
16:30 US - Crude oil inventories
18:15 Eurozone - Speech by Benoit Coeuré, Member of the ECB
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