Asian Stocks Decline for Second Straight Trading Week

Asian Stocks Decline for Second Straight Trading Week

Currencies

USD

The dollar has seen its longest rally since 1967. This comes as the Federal Reserve is set to raise interest rates next year, while other leading central banks push ahead with additional stimulus plans. The U.S. Dollar Index jumped for the 10th straight trading week. The Fed is one of the two central banks which is set to go ahead with raising interest rates in 2015. Therefore, traders have priced this into the market, and are very bullish on the greenback at the moment. The U.S. Dollar Index jumped by a whopping 0.6 percent. More gains may be on the cards for the dollar in the days ahead.

GBP

The pound rose to its two year low at the end of last week. This comes following the Scottish no vote. The pound was able to jump to a two year high versus the euro. This has cut concerns the BOE will delay raising interest rates. In addition, the sterling jumped to its highest level in two weeks versus the greenback. Traders feel that the pound’s gains will be compounded in the upcoming trading week.

CAD

The Canadian dollar was one of the biggest winners last week.  The gains for the loonie came as the inflation rate rose faster than forecast. Inflation rate is at its highest level in two years. It seems that as the U.S. dollar is climbing, this has really lent the loonie a helping hand. There will be a lot of economic data published from the nation’s economy throughout the upcoming trading week. Therefore, traders should get ready to look over how the CAD has behaved in the past few trading weeks. This will help you make informed decision in the next few days of trading.

Stocks/Indices

Asian stocks dipped for the second straight trading week, despite climbing on Friday. The thing is that the Asian equity rally on Friday was driven by the weaker yen and the slide in U.S. jobless claims on Thursday. Among the biggest gainers were Honda Motor Company and Alacer Gold Corp.

On Friday, the MSCI Asia Pacific Index added 0.3 percent, but declined around 1 percent this week. The thing is that Friday saw Japan’s Topix Index advance 1.1 percent. South Korea’s Kospi Index climbed 0.3 percent.

There is a lot of optimism in the financial markets at the moment, despite Asian shares sliding for the week as a whole. Therefore, look for there to be gains in Asian stocks this upcoming trading week.

Commodities

Crude Oil

It was unfortunate to say that the crude oil binary option was hit hard this week. It slid for the last three trading days of the week, as traders decided to put their money into alternative assets. The rise in the U.S. dollar and an increase in crude oil inventories is something which has really driven crude prices lower lately. Stockpiles advanced last week for the first time since August 8, and traders feel oil prices will continue heading lower.

Gold

We saw gold take a beating in recent trading days. It fell to its lowest price in eight months, as traders followed how the dollar surged to its highest level in a long time. What we also saw was U.S. equities surge to a record, driving down the demand of haven assets. More of the same is likely during the upcoming week.

Wild Card

Dow Jones

With the Dow Jones going higher and higher, expect it to build on its gains as the trading of the coming week gets going.