Daily Review 13.06.2018

Investors focus on the Fed and ECB’s meetings scheduled to take place today and tomorrow. European and U.S. stocks close higher; Asian stocks close mixed

Traders were cautious on Wednesday as they were turning their eyes away from geopolitical issues to major macro-economic events scheduled to happen this week. Later on today, the Fed is going to convene. Analysts assess it will opt for a 25 basis point rate hike, the second this year. The ECB will meet tomorrow. Most likely it will scale down its stimuli plan with major effects on the euro. Lastly, on Friday, the Bank of Japan will publish its next monetary steps.

The wait and see approach adopted by investors made Asian indices close mixed. The Nikkei went higher by 0.4%. The broader Topix climbed at the same rate. In China, the CSI300 index tumbled by 0.7%; the Shanghai Composite plummeted by 0.8%. The Hang Seng fell by 0.6%. In Australia, the S&P/ASX 200 lost 0.5% of its value.

In Europe and the United States, the overall trend was more positive. The Stoxx600 rose by 0.2%. The FTSE and DAX went higher by 0.1% and the French CAC advanced by 0.3%. Wall Street’s Dow Jones added 0.1% to its value. The S&P 500 and Nasdaq climbed by 0.2% and 0.3% respectively. The Russell 2000 index performed relatively well with a rise of 0.4%.

In global forex arenas, the U.S. dollar index, which measures the performances of the greenback vis-à-vis its 6 major rivals, remained stable with a minor rise of 0.04% at 93.858. Versus the yen, the dollar managed to advance from ¥110.30 yesterday to ¥110.61 today. The euro closed at $1.17. The bitcoin plummeted to its lowest point since February as it was traded below $6,500.

On the energy markets, oil stayed in red zone not being able to reverse yesterday’s price drops. Investors are concerned about rising production in Russia and the United States. The dollar’s strength also had negative impact on the black gold. Brent crude went down by 35 cents closing at $75.53 a barrel. U.S. light crude lost 40 cents and settled at $65.96.