Varchev Finance: Trading day in one post – 15.06.2018

Asian Stock Market: Asian markets were mixed on Friday as investors awaited developments on the trade front ahead of the expected unveiling of U.S. tariffs targeting China. Clues from the European Central Bank on Thursday on its bond-buying program also led to major moves in currency markets overnight.


FX Market: The euro collapsed as the reason for this was again the president of the European Central Bank, Mario Draghi. He commented that he would take fiscal stimulus measures at the end of the year and would not raise interest rates until at least the following summer. Although no one was expecting an increase in interest rates, traders were prepared to hear comments about the end of QE rather earlier than claimed. On the other hand, there is the dollar. Donald Trump’s protecţionist actions and the undisputed power of the US economy support the greenback, which continues to hammer the helpless euro. The most traded cross made 288 pips in declining manner, breaking any short-term support on its way. At the moment, the price stood at around 1.156, but it seems that the downturn will continue. This weakness of the euro is good news for European indices, with DAX recording its strongest day for quite some time.


Commodities market: The International Energy Agency (IEA) is of the opinion that the latest oil spike may be the so-called “last impulse” after the price goes down. Behind these allegations are concerns that the upward trend in the raw material may harm global growth. Rising oil prices have also raised the question of the strength of demand, and the response is in stark contrast to rising prices. If, until two years ago, electric cars were the taboo theme for much of the world, today the restructuring not only for the automotive sector, but even of the shipping and aviation industry are the agenda. Only until 2020. the shipping industry using mainly diesel will have to reduce its emissions by 30%. To illustrate the size of this, I will only say that the entire shipping industry is emitting emissions as much as Germany and Canada put together … In short, demand will not rise. The risks to oil remain a rise in the US dollar, as well as temporary conflicts in the Middle East.


European stock market: Today, European markets will also open cautiously, awaiting CPI data in the region. The German DAX will record losses at the start of the session, which is normal given that yesterday it recorded its strongest session for quite some time. Uncertainty about trade relations continues to weigh on stocks, as imposing import duties on the part of the United States can really hurt their businesses and shut down many jobs.


U.S. stock market: Nasdaq composite struck a new record yesterday, as dealmaking activity picked up shares in the technology and media sectors. The index jumped 0.8% to Facebook, Netflix and Alphabet among the best-performing stocks. The S & P 500 is also traded in green territory, rising by 0.3%. Twenty-First Century Fox shares rose 1.8 percent after Comcast announced that it would buy a large share of the media giant for $ 65 billion. Comcast’s offer beat Disney’s initial $ 52.4 billion deal. Comcast shares jumped 3.8%, while Disney advanced by 1.9%. The indices are on resistance and if the bulls want to continue to enjoy their profits, it will be the first and the main obstacle. After that the road seems to be clear to the all-time high-a. Today there are no significant economic news in the US, so the development of trade talks will drive investors’ moods.


Economic calendar for the European and U.S. trading sessions:
12:00 Europe – CPI
12:45 Europe – ECB’s Coeure Speaks
16:15 USA – Industrial Production
17:00 USA – Michigan Consumer Expectations
20:00 USA – Baker Hughes Oil Rig Count

 Trader Aleksandar Kumanov

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