Today began with news from Japan, where a meeting of the Bank of Japan was held. Once again, the BoJ declared their commitment to the current monetary policy at least until next year. Demand for safe assets has grown slightly today due to growing fears about a slowdown in the global economy. Therefore, the JPY rose in value as a safe asset. Gold also rose in price, rebounding from the minimum reached this week. At the same time, the dollar maintains a high position, taking into account positive macroeconomic statistics.
In the afternoon we expect another report from the US on basic orders for durable goods, which is likely to support the US dollar. Investors do not require much from the US economy and expect orders growth by only 0.2%.
The stock market is experiencing high volatility this week as leading companies publish their quarterly reports. The growth leader was Microsoft, whose shares have grown over the past 4 months by 18.4%. Also, shares of the German company Bayer rose in price, which increased its quarterly profit by 45% after the purchasing of the American seed producer Monsanto. The stock value of the latter has also increased in price.
The leader of the stock decrease by the results of quarterly reports can be considered the Finnish company Nokia, whose shares decreased by 10% due to disputes with Huawei, as well as strong competition with all Chinese manufacturers of telecommunications equipment. Tesla shares also fell by 5% in just a day as the quarterly report showed a net loss of $700 million. Moreover, the company expects the situation to improve only in the third quarter of 2019. Therefore, there is every reason to expect that sales of Tesla shares have not yet finished and will continue falling.
