Kuroda Declaration Triggered Nikkei
At the end of trading yesterday the Japanese stock market, the Nikkei index closed down -0.83 percent, or -142.62 points, to 16,974.45. A weaker Nikkei triggered BOJ Governor’s statement related to continued negative interest rate cuts.
Bank of Japan Governor Haruhiko Kuroda said that it is theoretically possible for the central bank to cut interest rates to around minus 0.5 percent, pushing the banking sector suffered the biggest decline.
At the end of yesterday’s trading, banking stocks fell. Shares Chiba Bank Ltd / The dropped -4.43%, stock Shizuoka Bank Ltd / The dropped -4.16%, shares of Shinsei Bank Ltd. fell -3.77%, shares of Bank of Yokohama Ltd. / The down -3.77% ,
Shares of Japanese exporters also ended mostly lower, with Toyota shares fell 0.71 percent, 2.19 percent lower Honda and Nissan slipped 1.23 percent.
Meanwhile, electronics giant Sharp shares fell 11.84 percent after a report said that the Taiwan-based company Foxconn may delay the takeover deal Sharp to get more clarity on the financial performance, Reuters reported.
In late February, Reuters reported that Sharp has contingent liabilities of approximately 300 billion yen (US $ 2.66 billion) that has not been disclosed to Foxconn.
As for the Nikkei index futures tracked up 40 points or 0.24% at 16.850, up from the previous trading at 16.810.
Technically,
Resistance: 17150 17225 17 275 High / Low: 17110/16880
Support: 17010 16905 16 770 Running Price: 17080
Comment: For intraday trade today suggest sell at level 17130 and stop loss at the level of 17180 and the target at the level of 16810.
GBPUSD Slipped To Level 2-Week Low
Sterling slipped to a 2-week lows against the US dollar on the previous day after the Office of Budget Responsibility revised down the growth outlook for the UK economy.
In its annual budget report, Finance Minister George Osborne delivered if the OBR expects the economy to grow 2% this year, lower than the 2.4% projected in November. For 2017, the economy is expected to grow 2.2%.
Previously, Sterling has been under pressure as the wage data and a solid job failed to offset concerns over the possible risks posed by referendum ‘Brexit’. A survey published Tuesday showed the number of votes in favor of the UK to leave the European Union edged than requiring the UK to stay afloat.
GBPUSD is currently monitored trading 0.35% lower at $ 1.4105, after touching a two-week lows at $ 1.4051 area. The pair is still likely to weaken further if the Federal Reserve’s policy statement signaled the possibility to raise interest rates again this year.
Technically,
Resistance: 1.4320 1.4360 1.4400 High / Low: 1.4290 / 1.4241
Support: 1.4240 1.4200 1.4160 Running Price: 1.4282
Comment: For intraday trade today suggest Buy at the level of 1.4250 stop loss at the level of 1.4215 and targets 1.4348.
Oil Prices Surge Overnight
US crude oil futures jumped more than 4%, erasing losses from the previous two sessions as the dollar slid sharply after the Federal Reserve unexpectedly lowered interest rates for the year 2016.
On the New York Mercantile Exchange, WTI crude oil for delivery in April traded in a range between $ 36.62 and $ 38.62 per barrel, before settling at $ 38.61, up $ 2.00 or 4.61%. On the Intercontinental Exchange (ICE), Brent for May delivery wavered between $ 38.84 and $ 40.42 per barrel, before closing at $ 40.24, up 2.04 or 3.90%.
Crude oil extended gains after the release of a statement previously relatively dovish monetary policy from the Federal Reserve. In a 9-1 vote, the Federal Open Market Committee (FOMC) kept the Federal Funds rate in a range between 0.25% and 0.50%, leaving the benchmark rate unchanged for the second month in a row. More importantly, the FOMC lowered its forecast for the next interest rate hike by 50 basis points for each of the next two years.
Crude oil prices have dropped more than 50% since OPEC rattled global markets in November 2014, with the strategic decision to maintain its production level above 30 million barrels per day. This tactic trigger prolonged battle with US shale producers for market share, and flooded the global energy market with excessive supply. Oil’s drop has also withstand long-term US inflation, which remains below the Fed’s targeted goal of 2% for each month during the last three years.
Technically,
Resistance: 39.60 40.00 40.80 High / Low: 39.35 / 38.45
Support: 39.00 38.40 37.80 Running Price: 39.26
Comment: For intraday trade today suggest Sell at level of 39.90 stop and reversal during a break above the level of 40.20 and targets at the level of 38.15 and target of reversal at the level of 41.00.
