Weekly Top Gainers/Losers: 18.07.2018

Dmitry Lukashov IFC Markets

Top Gainers – The World Market

1. Sharp Corp – stocks of the corporation engaged in the production of electronics rose after the cancellation of the additional issue in the amount of 226 billion yen in early July. Now its shares have increased together with the American high-tech companies, as well as amid the weakening of the yen.

2. SoftBank Corp – stock prices of the Japanese telecommunication and media corporation rose amid the purchase of Yahoo Japan Corp for $2 billion.

market sentiment ratio long short positions

Top Losers – The World Market

1. Asaleo Care Ltd – stock prices of the Australian company engaged in the production of hygiene products collapsed after the publication of weak earnings reports for the 2nd quarter of 2018.

2. Hertz Global Holdings – stocks of the international car rental company fell, as investors fear that it will be difficult for the company to compete with car sharing companies. Morgan Stanley Bank lowered recommendations for Hertz. The company will publish its earnings report for the second quarter of 2018 only on August 6.

Top Gainers – Foreign Exchange Market (Forex)

1. USDJPY - the growth of the Japanese yen on the chart indicates its weakening against the US dollar. This occurs due to the difference in monetary policy. The Bank of Japan continues the issue and redemption of assets and maintains the rate at the level of minus 0.1%. The US Fed has already raised its rate to plus 2% and plans to continue the rate hike. On Thursday, the trade balance for June will be released in Japan, and inflation - on Friday. These data may affect the exchange rate of the yen.

Top Losers - Foreign Exchange Market (Forex)

1. EURMXN, EURZAR - the decline of this chart means the strengthening of the Mexican peso and the South African rand against the euro. The single currency demonstrates a moderate weakening amid investors’ fears that the terms for the withdrawal of the UK from the EU may be less profitable for the European Union than it was expected. On Friday, the current account balance of the Eurozone will be published, which may affect the dynamics of the euro. The Mexican peso is strengthening amid positive statements by the new president of Mexico, a candidate from the coalition of leftist forces Lopez Obrador, who won the July 1 elections. In addition, investors believe that amid the trade war with China, the US will not demand a rough revision of the trade agreement with Mexico and Canada. The South African rand strengthened ahead of the meeting of the Reserve Bank of South Africa, which will be held on July 19, 2018.

2. USDMXN - the decline of this chart means the strengthening of the Mexican peso amid the US dollar.

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Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

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