Weight the Nikkei Japanese Manufacturing Activity
Nikkei still slumped in negative territory after Japan’s manufacturing index reduced the signal will still be continuing recession Japan’s economy in the last quarter of 2014. The manufacturing index released by the Ministry of Finance Japan fell to 8.1 for the last quarter of 2014; lower than the predicted 13.1 and 12.7 publication of the previous quarter.
Japan falls back into recession in the third quarter after tax increase in April hit the purchasing power of consumers and the fragility of the global economy undermined export performance. Nikkei futures down 1.18% and is now trading at 17 585.
Investors also looked concerned with short-term borrowing rules tightening Chinese and Greek political risks that can eat away at the world economic outlook. Chinese regulators tighten rules on collateral for short-term loans are no longer accepting applications for the repurchase of bonds with credit ratings below AAA or bonds issued by companies that are rated below AA.
On the other hand, Prime Minister Antonis Samaras accelerate Greek presidential election voting. Greek Parliament is scheduled to hold a vote on 17 December. However, investors are worried Samaras will not be able to reach 75% of the parliamentary vote to pass a presidential candidate.
Technically, the index on the trading session today, Wednesday (10/12) likely to weaken, test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume tends to rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 17500 and 17450. If it fails in 17545, we then estimated the index tends to retest the resistance level that is 17 580 and continued until the possibilities are in the area of 17 630.
Germany Trade Data Bounce Euro
The euro rose against the dollar on Tuesday, after data showed Germany’s trade surplus widened more than economists forecast in October, despite last week’s US employment report continues to provide support for the demand for the greenback.
Government data showed that Germany’s trade surplus widen to 20.6 billion euros in October from 18.6 billion euros in September, the figure was revised up from previous reports which showed a surplus of 18.5 billion euros.
Analysts previously expected trade surplus will widen to 19.2 billion euros in October.
The report came a day after data showed German industrial production rose 0.2% in October, while it reports in September were revised down to 1.1% from 1.4%. The data has sparked concerns on the outlook for growth in the fourth quarter of Germany.
Technically, the trading session today, Wednesday (10/12), the pair Euro-dollar likely to move in the negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.2300 and 1.2250 maximum. Meanwhile, if the Euro is able to break and hold above 1.2368, then the other alternative scenario that Euro chance to test resistance in 1.2390 and 1.2440 area.
Gold Opportunity Stronger, Stock Still Negative
US stock index continues to come under pressure in the second day of trading this week. The market is still affected by the negative sentiment the previous day’s trading.
In global trade in Wednesday (10/12) begins with the negative data from the number of business confidence in Australia. These data add to the previous sentiment which also revealed a German import export slowdown as well. Britain itself also presented the results of industrial production figures, which are surprisingly also showed a decline. Various inter-corporate news in the US was also negative shades. Relief obtained by strengthening that occurs from the price of crude oil.
US stocks turned backwards in the beginning of this week’s trading. Dow Jones index and the S & P 500 reversed from the highest peak position for five years, in line with the fall of the commodity as a reaction to the disappointment of the various economic data from overseas. Average trading opened lower and does not stray to mid trading session. Then come to a close, gradually decreased before finally moving back and forth just at the end of the trading session.
Dow Jones index ended down 106.31 points or down 0:59 percent to 17.853, S & P 500 index fell 0.73 percent or 15:06 points to 2,060 and the Nasdaq index ended at 4.741, down 40.06 points or 0.84 percent. Nineteen thirty shares of stock forming the Dow Jones index ended down, with stocks such as McDonald’s, Chevron, and Exxon Mobile Caterpillar led the fall. Instead Travelers, United Technologies and American Express led the gains. Issuer energy, basic materials, semi-conductors, computer hardware and transportation into a group of issuers that are performing poorly. While stocks Biotechnology protruding reinforcement.
The US Commerce Department is scheduled to issue the data inventory in October at 10 o’clock local time. US inventory data is estimated to have increased by 0.2 percent from the previous month. As an illustration, in September, the US inventory data increased 0.3 percent from the previous month. This figure is better than the initial estimate of 0.2 percent. Overall, the comparison between the inventory to sales versus 1:19 compared to 1:16 in the last year.
Some issuers will issue their report today as H & R Block who will present their second quarter earnings. It is estimated that the income would be falling short of initial estimates. Pep Boys also reported losses in the third quarter report. Revenue was also reportedly deteriorated. Auto zone report their income in the first quarter was better than expected.
From mainland Europe reported that the European markets declined. Traders disappointed with various European economic data worrisome economic growth. One of the issuer of the UK, Tesco stated that their trading profits for the year to February 2015 is not expected to exceed 1.4 billion pounds.
Technically, gold in today’s trading session on Wednesday (10/12) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Bands that began to widen, thus giving impetus to the gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1223.33 and re-test the maximum level of 1218.73. However, if the price of gold is able to break and hold above 1228.50, the estimated price of gold could potentially test the 1230.40 and 1235.72 resistance.
