Asian Stock Market – Chinese stock markets collapsed by more than two percent against the backdrop of growing tensions between the US and China. The Asian session was marked by strong volatility due to US threats to China and the subsequent response of the Asian giant. Hang Seng collapsed by 1.9%, Shanghai composite by 2.49%, and Shenzhen by almost 4%. In Japan the markets were not protected – Nikkei 225 traded 0.9% lower. Korean Kospi recorded a decline of 0.65%, and the Australian ASX200 posted a decline of only 0.37% thanks to RBA, which published a highly optimistic report for the Australian economy.
FX market – After the first paragraph, you will not be surprised if I tell you that Safe Havens, JPY and CHF were the biggest gainers in the first hours of the day. Investors have fled to shelters, as stock market auctions and concerns have taken precedence. I expect the negative sentiment to be maintained during the European session as additional JPY increases are very likely. In most cases of market sales, CHF is overlooked by investors, but when that happens, keep in mind that things can be very serious. CAD and AUD marked down. Despite the good RBA report, AUD is trading down due to the escalating tension between the US and China. The Canadian, for its part, suffers losses due to oil cuts and the unclear end of the OPEC meeting that we are expecting on Friday.
Commodity Market – Finally, gold moved. In the first few hours of trade, precious metal recorded a growth of 0.40%, sparking sparks between the US and China. Oil is trading again with a downward trend, while traders are awaiting the final and official OPEC + decision on extraction. On Friday, we expect the cartel meeting, which still lacks a clear end. I expect that Friday’s OPEC + collection will not end with a constructive end, and this will lead to a rift in the relationship between members. Then I expect the parties to start extracting with all forces, which will lead to Sell Off in oil.
European stock market – Expected negative sentiment from Asia will also be transferred to European markets. The DAX30 will start the session by 140 points lower at a price of about € 12,720. The CAC40 will open with a gap of 50 points lower and the UKX with 52 points. During the European session, we expect Mario Draghi’s speech, but no matter how positive it is, it will surely be overshadowed by the impact of the trade war. I expect the negative emotions to dominate the market during the European and US exchange sessions.
US Stock Market – US indices declined as escalating tensions between the world’s two largest economies The US and China worried investors on Wall Street. Dow Jones recorded fifth consecutive loss, recording a decline of 103.01 points. The S & P 500 declined by 0.21%. The Nasdaq technology benchmark kept its closing level from the previous session, with its initial loss being offset by Amazon’s performance. NASDAQ turned its back on all worries and registered All Time High at the end of last week.
Economic Calendar for European and US Trade Sessions – 19.06.2018
11:00 Europe – Speech by Mario Draghi, President of the ECB
15:30 United States – Building permits
Trader Petar Milanov