Market Commentary March 7

The Trading Daily Market Commentary features a summary of selected market segments as well as economic matters. Its content of interest is made available to all traders and investors at large

US market had a shaky show after all main indices ended in the red territory for the third consecutive trading sessions. The DJI closed minus 0.52%, broader S&P 500 finished with minus 0.65% closure. 

The Nasdaq 100 closed minus 0.62%, each had rough days, while the small-cap Russell 2000 suffered the most significant decline on a percentage basis with minus 2.01% on the day.

The fishing expedition for taxes and revenue resume in Washington DC, as US Senator Brian Schatz (D) introduced a 0.1% tax levy on bonds, equities, and derivatives. Advocates claim the additional tax revenue could raise nearly $750 Billion throughout the ten years. 

many other countries have implemented similar taxes on the three sectors of the market, and if executed in the US as currently specified, the tax rate would apply to each and every trade executed within the American markets at the time of buying - not sale mind you, which is where tax - capital gains would apply. 

Logic would direct that this is very far-off of anything which could ultimately make its move into law, although it is contemplative of how far “the progressives” on the left (Socialist) are prepared to go.

Asia-Pacific Market

On the Asian-Pacific market market front another excellent day for Chinese equities. The core Shanghai Composite added 1.54% to close at 3101, the highest closing ever since June of 2018. 

The Indian Sensex increased 0.52% to finish at 36633, H.K. Hang Seng and Aussie ASX200 indices rose 0.26% to close 29,038 and 0.75% to post a 6,246 closure respectively. 

However, both the Japan Nikkei 225 index and South Kore KOSPI index took the opposite path declining with negative outcome posting 0.60% close at 21,597 and minus 0.23% to conclude at 2174 close respectively.

European Market

The EU countries have “no real solution” to crack the Brexit deadlock with the United Kingdom. In other headline news, the European Union seems to be dropping its plans for a tax on the digital service sector, which at one time would have affected Apple’s sales numbers along with the likes of Google, Facebook, and Amazon.

A mixed trading session for Eurozone stocks - the U.K. FTSE 100 index increased 0.16% to close at 7195, French CAC 40 index and German DAX30 index took the opposite direction by decreasing 0.15% to finish at 5289 and 0.27% to post 11589 closure respectively.

Forex Market

The US Dollar Index finished slightly down from Wednesday’s trading day showing 0.02% loss. The Canadian Dollar rose plus 0.67% to close at 1.3441.

Most important Asia-Pacific currencies weakened against the US Dollar. The weak Gross Domestic Product growth in Aussie land was one proponent, causing the Dollar (AU) to hit an eight-week low, losing 0.8%.

The Kiwi Dollar decreased by 0.24% to close at 0.6773. The Chinese Yuan increased 0.18% to post a 6.7159 closure and the H.K. Dollar rose 0.0002 to close at 7.8498. The Japanese Yen turn in downwards declining 0.11% to settle near the 112 handle.

The British Pound weakened 0.06% to close at 1.3171 and Swiss Franc rose 0.08% to close at 1.0050. The Euro Dollar posted an increase of 0.01% to close the session at 1.1306.


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