In almost every country with a functioning free market economy, stock exchanges operate on which shares, bonds, commodities, derivatives and other financial instruments are traded. Nearly 40 percent of global stock trading is concentrated in North America. 33 percent are Asian markets, 19.5 percent of the turnover is on stock exchanges in Europe. What time does the stock market open?
Asian session – Tokyo
What hours does the Asian session take place? It is assumed that it lasts between 23:00 (opening of the Sydney stock exchange) to close the trading session in Tokyo – 10:00 in the morning.
Japan is the key market for this session. The Tokyo Stock Exchange, founded in 1878, is the third largest stock exchange market capitalization – $ 6.2 trillion (as of April 30, 2018) – second only to the New York Stock Exchange (NYSE) with capitalization of 24.2 bn dollars, and the second US NASDAQ stock exchange (11.8 bn dollars).
Asia is not only Japan, but also two strong stock exchanges from China (Shanghai $ 5 trillion; Shenzhen $ 3.5 trillion capitalization), one of Hong Kong ($ 4.4 trillion) and closing ten of the largest stock exchanges in the world – Bombay Stock Exchange (2 , $ 29 trillion).
Despite having as many as 5 exchanges on the list of top 10 exchanges, the Asian session is not very popular among investors on the forex market. This is mainly due to low liquidity, which automatically translates into higher spread costs.
European session – London
The European session starts with the start of listing in London at 9:00 am Polish time and lasts until 5:00 pm CET. At the same time, quotations are starting in other European countries, volatility on the currency market is increasing. Particular volatility is observed on pairs related to the euro such as EUR / GBP, EUR / JPY, or EUR / USD. This is the effect of transferring funds from individual exchanges. During the European session, market liquidity is high and spreads are narrow. Over time, volatility gradually decreases. Investors expect stronger movements on currencies, which may be visible when the US session begins.
American session – New York
The American session starts at 8:00 local time (EDT) and 14:00 European time (CET). Ends at 22:00 CET.
They include in its composition, among others Chicago and Toronto stock exchanges. On the other hand, the most important exchanges for this session are the New York stock exchanges: NYSE and NASDAQ. The latter, despite its fairly short history – it began operating only in 1971, and in 2006 obtained the appropriate stock exchange licenses – it quickly became the second largest stock exchange in the world.
The opening of the American session is very similar to that of the Old Continent. The first 2-3 hours are filled with many transactions with huge volumes, rapid directional movements and volatility. This is not only due to the fact that these two sessions overlap, which affects a larger number of investors, but also due to the publication of macroeconomic data.