Trading Week Ended March 2, 2018 


Worldwide trading stock markets fell this week following new Fed Chair Jerome Powell indicated the American economic outlook strengthened a lot more than anticipated. The comments ignited concerns that the Federal Reserve might raise interest rates four times this current year, as opposed to three times anticipated by traders and investors.

Besides leading to the decline in equity prices, bond yields moved higher, which in turn shoved lower bond prices and raised the Dollar vs. the majority of main currencies. Equities plunged even more following as President Trump stated he planned to impose tariffs on foreign raw metals, which includes aluminum, and steel, a move that could boost inflationary challenges as well as hinder global trade, it may be leading to a global trade war.

Trading Markets

Cryptos: The trading remains not all good in the crypto currency market, with numerous key coins continue to under performing the average. However, the reasonably robust currencies are steady, and a few of the front runners are displaying bullish symptoms, in spite of the insufficient broad strength.

Ethereum (ETH) continues to be trading in a thin range, moving marginally lower across the declining trend line this week. The crypto currently is right on the trendline, even though we expect a break-out shortly, the consolidation may keep on. Significant support level remains to be found at $845 price, with additional ranges at $780 and $740 respectively, whilst resistance level is ahead over the trendline at $910 and also $1000 price.

Bitcoin is among the most robust majors, getting even closer the $11,200 resistance again on Friday in late trading, following a number of short-term pullbacks recently. On top of that level, the confluence of the higher level, the earlier swing high as well as the declining trendline at $11,700 could be the upcoming significant hurdle, with the initial target coming to $13,000 level in the event of break-out. Although additional consolidation may be possible, investors and traders ought to hang on to their coinage since the recovery will most likely continue.

America: With Dow Jones futures had been trading plenty of the Asia-Pacific and European session in negative territory it had been no significant surprise we saw a sluggish open for cash. Early on cash market had been down nearly 400 points at one point, and we were forced to wait until the second half of the session before it appeared close to a rebound.

Then we had to reluctantly wait for the remaining minutes of the session until the Dow printed positive. However, that was not very true for the S&P500 or even NASDAQ100 which in turn both changed mid-afternoon and continuing to produce off those advances. Broader cash was looking for value at these cheaper levels, although there was the chatter of some European capital-boosting earlier in the day. 

Transports, autos, financials, along with cyclical’s all trading hefty with this cash rearing rumor which explains why we had to hang about until the final minutes of the session for most better price action. DJIA ended practically unchanged - with minus 0.15%, S&P500 has been plus 0.6%, NASDAQ100 finished positive 1.1% and also there was a great day for the Russell2000 small cap's gaining 1.7%.

Europe: Eurozone response ended up being cry foul of Trumps tariff step and threaten to refer the resolution to the World Trade Organization. Meanwhile, Brexit talks continue would both parties offering to meet in the middle as long as each side gets their way. 

Reported earnings were not so impressive in Europe, and having nearly all key indices completing the day about 2%. The atmosphere doesn't feel too upbeat before Sundays Italian elections. With indication of no clear winner on Sunday, and so it pretty much all boils down to coalitions in the making.

The Euro Dollar accompanied the Yen and created a bit ground up against the US Greenback, although considering that Britsh Pound wasn't there to lend a hand the DXY Index stayed at the end of the trading session with a 90 handle.

Deutsche Bank is yet another institution that has at last questioned the effectiveness of Quantitative Easing! It has taken these people Ten years to find out that so little from the generated excessive liquidity ceases to find its way into the actual economic system.

Asia-Pacific: Mainland China equity market stood out once again on Friday only because it didn't drop as much as many other core indices. Shanghai Index observed its days low soon after the opening bell and in some cases appeared to trade positively at one point just before lunchtime. But unfortunately, before Italian elections, Brexit negotiations along with President Trump’s tariff news anticipating a positive close seemed to be a measure too far considering this weekend's possible news headlines.

As a result, a drop of only negative 0.6% virtually felt as being a result! Unsurprisingly, the most significant decliners have been the car companies and steel producers with declines on average more than 4%. The land of rising sun reacted through verbal. However, that bid fails to stop the Yen currency appreciating a sizable number at 105 handle.  

Apparently, not great for Japan's Nikkei225 Index which ended the Friday trading down 2.5% - slightly above the 22,000 level. The Hong Kong's Hang Seng shed 1.5% with construction industries, financials, and technology sector all declining. The Indian SENSEX produced several attempts at positive territory only to fall minus 0.4% within the closing minutes of the trading session.

Elsewhere: Gold rallied nearly $20 that is 1.25% from Thursday's lows however managed to give some back onto the close. While we close out trading market this week, there's been a significant short covering within the Gold and Silver precious markets. West Texas Intermediate crude oil gathered $0.26 to close at $61.25 per barrel, along with wholesale petrol add in $0.01 to $1.91 per US gallon.


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