Asian Equities Higher, As U.S. Earnings Season Kicks Off and US Stocks hit Record Highs

Nikolas Papas

Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).

Asian Equities Higher, As U.S. Earnings Season Kicks Off

July 16, 2019

Asian indices finished higher today as US stocks hit record highs last Friday. The Hang Seng finished 0.29 percent higher at 28,554. The Shanghai Composite finished 0.40 percent higher to 2,942, while in Singapore, the FTSE Straits Times index finished 0.18 percent lower to 3,347. The Nikkei225 was closed. Australian equities ended 0.65 percent lower at 6,653.

The China Industrial Production (year over year) came in at 6.3% above forecasts of 5.2% in June. The China Gross Domestic Product (year over year) matched expectations of 6.2% for 2Q 2019. China Gross Domestic Product (quarter over quarter) came in at 1.6%, better than forecasts of 1.5% in 2Q. The China Retail Sales (year over year) came in at 9.8%, beating expectations of 8.3% in June.

European equities started the week stronger the upbeat Chinese. DAX30 is adding 0.55 percent to 12,391 CAC40 is 0.15 percent higher at 5,580 while the FTSE MIB in Milan is trading 0.21 percent higher at 22,268. The London Stock Exchange is 0,42 percent lower to 7,537 amid non-deal Brexit worries.

In commodities markets, crude oil trades 0.15 percent lower at $60.20 as traders turn cautious on recent highs. Brent oil trades 0.30% higher at $66,72 per barrel despite major oil producers have agreed to cut output. Gold trades higher at 1,412 keeping the bullish momentum as the price holds above all the major daily moving averages. On the upside, strong resistance will be met at 1,427 the daily high and then at 1,437 recent high.      

In cryptocurrencies market after comments from President Trump that he doesn’t like bitcoin and other cryptocurrencies last Friday, bitcoin (BTCUSD) trades 10,443, hitting the daily low at 9,843 and the daily high at 10,698. Immediate support for BTC stands now at $9,843 today’s low while next support stands at 9,000. On the upside, strong resistance now stands at 13,138 the high from Friday and then at 13,500 round figure. Ethereum (ETHUSD) trades lower at 225 with capitalization now to 24.2 billion. On the upside, the immediate resistance stands at 317 Friday’s high while the support stands at 203 the 100-day moving average, Litecoin (LTCUSD) also trades lower at 88.72. The crypto market cap now stands above $282.3 billion.

us stocks
NZDUSD Daily Chart

On the Lookout: China’s growth eased to its weakest pace in 27 years in the second quarter. Gross domestic product rose 6.2%, down from 6.4% growth in the first three months of the year but in line with analysts’ forecasts as the trade war with the US continues.

The industrial production came in at 6.3% higher in June compared to a year earlier, up from 5% growth the month before, while retail sales rose 9.8% year-on-year compared to 8.6% growth in May.

In the US trading session, the NY Fed’s Empire State Manufacturing Index came in at 4.3 in July beating estimates. 

Trading Perspective: In forex markets, USD trades flat at 96.89, the Aussie dollar trades higher at 0.7029, while Kiwi also trades higher at 0.6716.

GBPUSD trades 0.34 percent lower at 1.2531 as the pair rejected for one more time at 1.2580 area. Major support now stands at 1.24 which if broken might accelerate the slide further towards 1.23 round figure. On the upside, immediate resistance now stands at 1.2696 the 50-day moving average while more offers will emerge at 1.2894 the 200-day moving average.  

Sterling futures markets open interest decreased by 24 contracts while volume also decreased by 28,000 contracts.

us stocks
GBPUSD Daily Chart

EURUSD consolidates at 1.1260 and eyes the 1.13 mark which if the pair manages to close above will open the way to 1.1325 the 200-day moving average. On the downside, immediate support for the pair stands at 1.1253 the 100-day moving average while extra support will be met at 1.12 round figure. 

Euro futures markets open interest increased by 75 contracts while volume decreased by 40,900 contracts.

USDJPY is trading 0.03 percent lower at 107.86 having hit the daily low at 107.79 and the daily high at 108.10. USDJPY pair will find support around 107.79 round figure and then at 107.50. On the upside, immediate resistance for the pair now stands at 108.98 the recent high and then at 110.04 the 100-day moving average. 

USDCAD consolidates closes to yearly low at 1.3030 amid broadly USD weakness, and the rally in crude oil prices, Canada’s main export item seems to have added further strength in the Canadian Dollar (CAD). The pair will find immediate support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the upside, immediate resistance now stands at the 1.32 zone before an attempt to 1.3450 recent high from 31st May.  

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