Monday 29 May 2017

May 29, 2017 - Market Update

Short recap

Asia up
Europe opening higher but correcting
US & UK closed today on account of public holidays, some Asian countries as well


N. Korea playing with fire again
ZAR – Zuma still alive
Europe on its won after G7 and Merkel/Trump meeting
Tensions between US & EU mounting, nothing to change in the near term
Thank you Mr President for your kind EU/NATO wake up call
US to ban laptops from all flights in/out to US
US facing a shortage of houses while demand stays steady
What in turn will likely push prices higher in the years to come
Fed’s Williams – don’t want to disrupt the markets, medium term inflation trend “pretty favourable”

Equities

British Airways still experiencing issues with computer system
Investment conference in NY – may have some headlines on Q2 expectations from financials
Gazprom meeting with EU antitrust chief
Bombardier with first CS300 deliveries
US techs pushing US gov to increase privacy protection
Qualcomm to pay BlackBerry USD 940 mln in royalties
Chinese real estate companies flying high…may be too high…
Aramco – after LSE, NYSE it is now turn for Canadian TSE to lure IPO listing relying on its natural resources expertize

Bonds

10-yr Trys yield at 2.25%%
10-yr Bund yield at 0.33%

Quiet trading ahead of ECB and Fed June meetings
GE/EZ inflation data to show whether ECB is right with staying cautious on inflation ahead of June 8 meeting
Italy – markets will start to focus on Italy at some point
As EZ grows but Italy doesn’t
Japanese insurers like US bonds more over European papers (staying cautious)
They usually lend them to banks to earn extra income

EURUSD

1.1160 still acting as a support
1.1200 heavy as a resistance
1.1314 (76.4% Fibo)
1.1128 (61.8% Fibo)
Large option EUR 2.7 bln with strike 1.1100 expiring tomorrow
May point lower as we had an inverted hammer on weekly chart
And DXY found support above 96.44 (38.2% Fibo)


USDJPY

Offers around 111.50
50 DMA at 111.23 and 50% Fibo at 111.24 acting as support

EURAUD 

Looking to buy pullbacks as favorite scenario for now...


Weekly Commodity - Full article link

Tough week for commodities, crude, industrial metals, soybeans down, corn and wheat traders still hesitant

Data

ECB’s Nowotny (0715 GMT)
ECB’s Draghi (1300 GMT)
ECB’s Weidmann

Tue
GE: Flash CPI
US: PCE m/m expected at +0.1% vs -0.1% previous; y/y was 1.6% previously
Fed’s Brainard

Wed
EZ: Flash CPI – should move back to 0.8% level from 1.2% prior
Former FBI director James Comey to testify before Senate
Beige Book
ECB’s Coeure, Lautenschlaeger
Fed’s Kaplan, Williams

Thu
ECB’s Villeroy
Fed’s Powell

Fri
US NFPs 185k exp vs 211k prior
Unempl. rate 4.4% exp vs 4.4% prior
Average earnings +0.2% exp vs +0.3% prior
Fed’s Harker
EU-China Business summit (Juncker/Li)

June 8 – ECB meeting
June 8 – UK elections including Scotland, if SNP/Sturgeon wins the independence referendum likely to follow
June 11/18 – French Legislative (Parliamentary) elections (a big question mark for Macron to gain majority)
June 13/14 – FOMC meeting


Should you have any questions feel free to contact me anytime.

Good luck Champs!

Mr Hawk



DISCLAIMER: This material was created for informational purposes only and represents the Land of Trading team’s view of the past and current economic and capital market environment. It is not an investment advice and should not be viewed that way at all, and the creators of this material cannot be held liable for any potential losses resulting from trading, where despite this disclaimer someone would consider this material as an investment advice. All rights reserved ©2016. Contact: landoftradingATgmailDOTcom
  




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