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Varchev Finance: Trading day in one post – 25.06.2018

Asian Stock Market – Expectedly, Asian markets are declining as investors accumulate Donald Trump’s latest threats that have come in the last hours of last week. The Australian ASX200 declined by 0.80%, with the country’s main bank losers. Japan’s Nikkei 225 is trading close to break even for the day, while in China the markets are enjoying Trump’s attention, which today has dropped them by nearly a percentage. Shenzhen declined by 0.92% and Hang Seng fell 0.15%. Across Asia, energy companies have seen a rise due to oil growth, and I expect to move to Europe and the United States.

FX Market – JPY is the leading currency among the currencies, registering a growth of 0.42% amid a stock market sell-off and growing concerns about the trade war. As today’s economic data is missing, I expect the JPY growth to remain throughout the day as investors hedge their portfolios and speculate on the temporary uncertainty of the market. Emerging markets currencies, such as AUD and NZD, have seen declines due to escalating global trade relations. CAD fell slightly by 0.23% after oil fell. However, the Canadian will remain a strong currency as prospects for black gold remain positive. Today we expect the business climate data in Germany that would generate a short-term volatility in EUR. Today I do not expect strong movements in the combined currency.

Commodity Market – Gold comes out of lethargy, but despite commercial concerns and increased demand for safe havens, contrary to all logic, precious metal prices continue to collapse. The OPEK + agreement is already a fact, but oil runs in complete contradiction with the foundation. Apparently, this time, Wall Street has implemented the “Sell Hear and Buy Fact” tactics. I expect this upward momentum to end quickly, after which the price is set at between $ 65 and $ 70 a barrel. Of course, we can expect this scenario if current production is maintained.

European stock market – European markets will continue the decline from Friday, starting the session with gaps in the downward direction. DAX30 will open 50 points lower at a price of about € 12,500. The CAC40 will start with 30 points lower and UKX 20 points down. Today’s focus will be on the premium brands Daimler AG, BMW and Volkswagen AG, which are expected to mark a downward trend due to Donald Trump’s threats to impose 20 to 25% import duties on German cars. Energy companies will see growth that can help drive more balanced European index performance.

US Stock Market – Dow Jones jumped 119.19 points to 24,580.89 on Friday. Chevron and Exxon Mobil, which saw a 2% increase due to the surge in oil, had the best performance. The S & P 500 rose 0.2% to close at 2,754.88, while energy, raw materials, telecommunications and industry were the best-performing sectors. The Nasdaq technology cut 0.3% down, reaching 7,692.82, due to the depreciation of technology companies’ shares. Markets all over the world remain naughty this week because of the escalation of tensions in the trade dispute between the US and China.

Economic Calendar for the European and US Trade Session – 25.06.2018

11:00 Germany – IFO Business Climate

17:00 USA – Sales of New Homes


 Trader Petar Milanov


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