Varchev Finance: Trading day in one post – 08.06.2018

Asian Stock Market – Asian markets are trading slightly down after the profits accrued during the week. Typically, close-by closing of long positions is seen for the end of the week, but positivism remains on the market. The Nikkei 225 is traded at -0.30% lower, with all sectors in the index on red. In Australia, ASX200 is trading -0.05% lower. In South Korea, the technology sector, along with automotive, contributed to the decline of Kospi by 0.43%. In China, Hang Seng fell 0.66% and Shanghai composite 0.67%.

FX Market – China’s lower trade balance contributed to the fall in AUD, with the currency declining the largest decline among major currencies, -0.23%. NZD also traded down due to China’s weaker trade balance, while EUR, CHF and USD remained static. As you might guess the only winner against the backdrop of declining major currencies and stock indices is JPY. The Japanese currency posted an increase of 0.04%, with stronger growth being impossible as the country posted weaker GDP data for the country -0.2% compared to -0.1% expected. Today we expect Germany’s trade balance from 09:00, which may have an impact on EUR. Better data will lead to an appreciation of the currency, as investors and central bankers will have another fact to support the abolition of QE. At 11:30, we expect UK production data, not excluding the increased sterling volatility.

Commodity Market – Oil managed to hold more than $ 65 a barrel, backed by lagging supplies to Venezuela. Tankers are waiting to load more than 24 million barrels of crude oil. The Venezuelan oil company PDVSA has explained to its customers that, due to force majeure, it may temporarily cease to meet its contracts if the new terms of supply are not accepted. Due to a lack of foundation, GOLD remains close to $ 1300 per barrel without giving any signs of ups and downs. It seems investors will wait for the G-7 meeting, then the meeting between Trump and Kim Chen Un.

European stock market – European markets will start the European session without change, as I expect the negative sentiment from Asia to be transferred to Europe as well. The lack of economic news today implies that the inertial movement should be preserved. The upcoming G7 summits and the Trump-Kim Summit Summit in Singapore are also in support of the downgrade. Investors will prefer to close a portion of their purchases in order to protect themselves from unexpected developments during their visits.

US Stock Market – US markets ended the session on Thursday with rises after McDonald’s and Chevron reported strong increases. Dow Jones industrial average rose by 100 points. The S & P 500 is trading at a minimal increase of 0.07% and the energy sector and industrial companies are ahead of the rest. Meanwhile, the Nasdaq composite technology benchmark posted a decline of 0.7 percent after it became clear that Facebook was once again confronted with the personal data of its users. Netflix lost more than 1.5% of its value. Amazon and Alphabet also contributed to the Nasdaq losses.

Economic Calendar for the European and US Stock Session – 08.06.2018

09:00 Germany – Trade Balance
11:30 UK – Factory production
15:30 Canada – Unemployment Rate
20:00 USA – Baker Hughes oil rig count

 Trader Petar Milanov

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