Trading Market Commentary June 29, 2017

Commentary

The sole Euro Dollar (EURUSD) currency stands out as a celebrity of the week thus far, as the financial markets are absorbing the hawkish turn in the ECB's (European Central Bank) rhetoric speak of positivity. It's remarkable just how the marketplace evidently “misinterpreted” Mr. (Super Mario) Draghi’s speech, and within few days Mark Carney (Carnival Man) re-structured his look (without any data release) on practically the same time frame! Hello! are they actually talking to one another. 

Foreign currencies, as well as Global equity markets, are erratic and volatile on account of the combination of contradicting messages. However, the common subject matter is the fact that leading central banks are on the tightening up timetable, regardless of the latest slowdown in economic warning signs. 

Aside from the central bank's issue, the release of the US Gross Domestic Products (GDP) data was the principal anticipated function of the day. However, growth was in range with anticipations, causing stock markets unaffected. 

US Market

Securities rose well off their particular worst type of levels throughout afternoon trading session on Thursday, however, stayed trapped firmly within a negative area. With the decline on the day, the primary Indexes mostly cancel out the gains placed in the last trading session.

The primary Indexes all finished lower, while the tech-heavy NASDAQ underperformed its cousins. However, the Technology segment closed down 90.06 points (-1.6%) on the day to 6,144.35. This was off of previous lows as soon as the NASDAQ was beaten the 2% drop. Technology sector took a whipping in yesterday's trading session. However, it remains to be up more than 17% in First Half of 2017.

The DowJones fell 167.58 points (0.8%) to 21,287.03, and it was up more than 13% with the major decliners being Energy sector lower almost 14% Year To Date (YTD). The S&P500 dropped 20.99 points, (0.9%) to 2,419.70 despite Q1 2017 GDP (Gross Domestic Product) growing a lot better than anticipated at 1.4% but could not possibly retain the levels experienced for H1 (Year First Half). 

European Markets

The FTSE100, CAC40, and DAX30 all finished about 1.6% - 2% lower as we approach the important Week, Month as well as Quarter end tomorrow (Friday). The FTSE 100 Index dropped by 0.5%, the CAC40 Index and the DAX30 Index nosedived by 1.9 percent and 1.8%, respectively.

Lots of people are talking about the agenda for G20 meeting (July 7-8th) and trying to employ that for this week's fun as well as games encompassing central bank announcements.

Asia-Pacific Markets

A good all round follow-up for Asia-Pacific stock markets since there's much of the chat in Eurozone encircled with regulations, in Asian countries, they were following details coming from three leading central banks -  UK, Europe, as well as Canada.

The Nikkei225 Index overturned Wednesday's 0.4% loss employing a plus0.5% gain for Thursday session, which went to damage the Japanese Yen (USDJPY) into the 113 handle. This has been an excellent comeback for the Nikkei225 Index after the sluggish than anticipated Retail Sales stat at 2% vs. 2.6% estimated.  

The Shanghai Index as well as Hang Seng Index both generated robust results yesterday since the Yuan dealt was trading at the strongest level this current year at 6.794. Aussie ASX has also been healthy after the commodity and energy sectors rallies ending up more than 1%. SENSEX finished with little change, however the NIFTY ended session a little bit better at +0.2%.

Currency & Commodities Market

The US Dollar dropped ground up against the Canadian Dollar (USDCAD), the British Pound (GBPUSD), and the Aussie Dollar (AUDUSD) while rallying as compared to the extremely fragile Japanese Yen (USDJPY). The Bank of Japan (BOJ) appears to be the only real central bank that's unwilling to tighten up monetary conditions because the country’s economic climate remains to be lethargic.

The yellow metal is under pressure in the midst of the tightening up the hypothesis, and it is hovering around $1250 zone, whereas crude oil is accumulating muscle as geopolitical concerns in the Middle East had taken the backseat in a recent couple of days.

Ethereum, as well as Bitcoin, bumped into resistance levels following the robust rebound of the past a couple of days, and also the vast cryptocurrency move stalled to some degree near the $2600 resistance levels.

Note

Friday being a pre-holiday day, here we look forward to these kinds of situations simply because marketplaces typically tense up well before holidays. And the fact is that, in the closing hours of the lead-in towards the holiday, you will also find individuals who get hold of cold feet and will not hold throughout the holiday weekend due to the thought of severe risk.

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