Uncertainty of the markets contributed to the indecisiveness of Asian investors, who are waiting for the Fed meeting and clues regarding the future monetary policy of the United States.
The MSCI index rose slightly higher after its fall during the Asian session, as well as the session on Wall Street. DJIA reached its historic high at the close of the fifth session in a row, and the S & P 500 closed the second session in a row at a record high, as the growth of yield on Treasury bonds contributed to the growth of shares in the financial sector. The Japanese Nikkei index, also following the global positive trend, rose 1.2% at the beginning of trading against a weak yen, as the Tokyo Stock Exchange opened today after a holiday weekend. Continue reading →
Yesterday after the market closed, Apple Inc. published its reports, showing good results. Against this backdrop, shares of technology companies in Asia such as Manufacturing Co and AAC Technologies Holdings Inc, which are Apple’s suppliers, rose in price. Revenue from sales of the iPhone exceeded expectations, as well as earnings per share of the company, and soon there will be 10 anniversary of the release of the smartphone from Apple. The MSCI index was stable at the beginning of trading, and the Nikkei rose 0.4%. On Wall Street, Nasdaq rose 0.23%, Dow Jones closed 0.33% higher yesterday, while the S & P 500 rose 0.24%. Continue reading →
Another attempt by the Republicans to replace Obamacare failed, which casts doubt on Trump’s ability to carry out the restructuring of the tax system in the United States promised in the election campaign.
This had a negative effect on the dollar exchange rate. The USDAUD pair was trading at the two-year low, and USDCHF at the yearly low. The losses of USDJPY were limited, as the Central Bank of Japan adheres to its large-scale incentive plan, which contributed to a drop in yield. The euro traded steadily at 1.1542 at the beginning of the session: investors are cautious ahead of the ECB monetary policy meeting to be held on Thursday. Continue reading →
Shares of Australian companies rose by 1.65%. The increase is quite impressive, if we recall the fall of 2.3% during the previous two sessions. Seoul’s markets were shocked: North Korea tested the intercontinental ballistic missile. The Australian dollar rose 0.1% and traded at $ 0.7666 on the eve of the meeting of the Reserve Bank of Australia. It is expected that the RBA will keep the interest rate unchanged, at 1.5%. The US dollar rose after the June index of activity in the industrial sector came out better than expected. Another positive factor for the US currency is a positive and stable increase in government spending on construction projects in May. Continue reading →
The published Minutes of the FOMC session left a bad taste in the mouth of traders, as weak comments from committee members raised doubts about the reality of the June rate hike. Markets will be sensitive to the data from the US and will be guided by them. Next, we’ll look at the key publications for today.
Among the first to come out preliminary data on GDP (q/q) of Great Britain. Given the recent strength of the pound sterling, this publication can cause market volatility. This indicator reflects the change in the value of goods and services produced in Britain, and is the primary indicator of the economic health of the country. If it exceeds expectations, the pound sterling rate will rise. Against the backdrop of a disappointing report, the British currency may fall and lose yesterday’s levels. Continue reading →
Shares on Wall Street and in Asia are traded in negative territory with increasing US political problems. Caution comes in the light of a note by former KGB Director FBI who said that Trump had called him to abandon the investigation of former national security adviser Flynn, who recently resigned because of secret meetings with Russian politicians in which the media accused him of collusion with the Russians To influence the elections in the United States.
Concerns also leaked to currency markets where the US dollar was hit lower, falling against the major currencies, as we see the USD index, a measure of the strength of the dollar against the basket of currencies, dropping below 98. Continue reading →
Yesterday’s trade showed that the markets were tired again, as we saw that Asian stocks don’t keep up with Wall Street growth, when both NASDAQ and S&P 500 showed record highs after stronger growth in energy reserves due to higher traffic In the crud oil. Nikkei 225 stopped at 20,000 points, adding 0.1%, while ASX 200 added 0.2% after a fairly neutral release of RBA-minutes, in which the Bank was concerned about housing and labor markets, balancing it with Forecast of sustainable GDP growth. In China, as in Shanghai comp. And Hang Seng lost 0.3%, as regulatory concerns mount.
In the currency pair, the dollar remained low, as we saw that the USD index, a measure of the strength of the US dollar against the basket of currencies, remains below the 99 level. JPY found strength, as sentiment fell overnight, prompting USDJPY to fall below 113.50, Canceling strong pressure on the purchase from the end of yesterday.
GBP remains muted ahead of today’s release of CPI, in which we expect a 2.6% growth year-on-year. Continue reading →
The main news of the weekend was the victory of the French presidential candidate Macron at 2 round of voting, which came in at 66.06% of vote. The lead up to the election weekend, saw the EUR being bought aggressively as markets priced in polling data which showed his advantage in numbers.
The markets opened with one last push of buyers, before we saw that the sellers again enter after the fact in covering long positions and trading with the hunt. Technically, EURUSD remains between the support level of 1.0950 and the resistance level of 1.1000, with a fixation of what is likely to set the tone for the upcoming week. Positive data from the EU will see a level of 1.1000, verifiable, while more pessimistic news will see the support level of 1.0950, tested. Continue reading →
American stocks and indices traded without any definite dynamics. So DJIA and S & P500 closed relatively smoothly, while the NASDAQ 100 reached a record high due to the growth of Apple shares (market capitalization of companies reached $ 800 billion). Asian stocks and indices traded relatively flatly, following the example of Wall Street and due to the lack of important publications. The only index that lost 0.5% yesterday was the ASX 200. The reason was the disappointing volume of retail sales in the country.
In the foreign exchange market, the US dollar rose overnight. Buyers supported the dollar index, which measures its strength against a number of major currencies, above the level of 99. Continue reading →