Trading Market Commentary August 23, 2017

Commentary

A big rally in crypto currencies took the show Wednesday, as stock markets continued to be reluctant to make any move ahead of the much-awaited Jackson Hole Federal Reserve symposium. With trading volumes continue to staying very low all round, however, the somewhat active currency trading market ruled the trading session.

A whole lot worse than anticipated New Home Sales (US) data put a bit of demand on stocks as well as the US Dollar, while the Eurozone PMI (Purchasing Managers Index) reports entered mixed. Together with the Federal Reserve yearly meeting beginning on Thursday, markets count on volatility as well as volumes to pick up in the last a couple of trading days of this week, with having a primary focus on the Treasuries and US Dollar. 

US  Market

Wall Street was all about the US Government possible shutdown coming from President Trump. The earliest move has been into Treasuries and Gold while sellers showed up in the Greenback; nonetheless, that came across as short-lived as market makers pondered what that required.

Market makers talk on Wednesday was that one of the largest - swarmed trades is shorting the DXY (US Dollar Index). Being previously at 102 level in January of this year and falling from that handle steadily, the Index is now around 9% lower YTD (Year-To-Date) to around 93.5.

Meanwhile, U.S. equities were not able to break the unchanged level throughout the trading session on Wednesday. The S&P500 Index was 8 points (0.3%) down closing at 2,444, the DJIA (Dow Jones Industrial Average) suffering 88 points (0.4%) to post 21,812, and the tech-heavy NASDAQ Composite dropped 19 points (0.3%) to 6,278.

European Markets

Eurozone heard Super Mario Draghi’s (European Central Bank boss) in Lindau (Germany) speech earlier yesterday, which in turn aided the Euro Dollar rally, particularly versus British Pound. This currency pair EURGBP gained plus 0.65% on Wednesday trading session (for the sake of Euro Dollar) showing the constructive European Central Bank spin even though GBP currency lost on account of possible much softer BREXIT news.

In the meantime, the German DAX30, Franch CAC40, and Spanish IBEX35 were all lower about 0.5% on the day as prices moved throughout the day, finishing close to the lows of the trading day, while the UK’s FTSE100 completed its journey unchanged slightly higher than the previous day close.

Asia-Pacific Market

A peaceful as well as a mixed session for Asia-Pacific region as traders and investors watched the main move, and that was in the US Greenback. Granted all the problems we see a steadier push for the Greenback, along with possibly an arguably underlying asset bid for Yellow Metal. 

The Japanese Nikkei225 did pull back a bit of Tuesday's downfall, finishing up respectable 0.25%, however worth stating that the JPY currency is a little more stable once again at 109 handle showing that the nervousness continues to be present. 

China's Shanghai market was quieter than normal - ultimately finishing virtually unchanged. However, this was probably on account of weather problems as tropical hurricane shot-down the HK's Hang Seng exchange. India's SENSEX finished strong, up close to 1% on the day.  

Commodity Market

Crude oil and Gold both ended up, as the yellow metal continues on its bullish consolidation beneath $1300 level, seeking ready to move out its long-standing trading area. Crude oil has been aided by the somewhat good US inventories numbers. However, it continues to be in a declining short-term trend as well as beneath the fundamental $48.50 price level.


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