Tokyo Shares End Positive, Inflation Data Watch Out
At the end of trading yesterday the Japanese stock market, the Nikkei index ended up 224.55 points, or 1.41 percent, at 16,140.34. Strengthening the Nikkei index triggered plan to increase state budget expenditures and positive investment data.
The Nikkei rebounded on reports that the government will increase fiscal spending. TV Asahi reported that Japan is considering additional budget of about 5 trillion yen ($ 45 billion).
Meanwhile Japanese investment data released yesterday were positive. Foreign Investment Bond 20 / Feb posted results 1974.3 billion yen, up from earlier sharp decline -1315.2 billion yen. Likewise, the data Stock Investment by Foreigners 20 / Feb posted the results of 441.0 billion yen, up from an earlier drop -562.5 billion yen.
At the end of yesterday’s trading the shares are traded in the index Nikkei stock Chubu Electric Power Co. Inc., which rose 6.86%, Panasonic Corp. rose 6.61%, Nippon Light Metal Holdings Co. Ltd. rose 6.02%, Obayashi Corp stock rose 5.84%, Tokyu Fudosan Holdings Corp. shares rose 5.78%.
The yen surged against the dollar in recent sessions, the dollar-yen pair traded at 112.16 per time 02:45 HK / SIN. A stronger yen is usually negative for Japanese exporters because it reduces the overseas profits when converted into local currency. But exporter shares ended mixed, with shares of Toyota fell 0.72 percent, while shares of Canon rose 0.37 percent.
As for the Nikkei index futures tracked rose 270 points or 1.70% at 16.130, up from the previous trading at 15.860.
Technically,
Resistance: 16480 16550 16 625 High / Low: 16460/16220
Support: 16340 16220 16110 Running Price: 16415
Comment: For intraday trade today suggest Sell at the level of 16450 stop loss at the level of 16500 targets at the level of 16210.
Brexit Anxiety Still Haunting Sterling
Sterling lay near 7-year lows against the dollar on the previous day and headed for the worst weekly performance since 2009 as investors worried about the potential for the release of the UK from the European Union.
Uncertainty created by the referendum on June 23 later on whether Britain will persist in the European Union making data confirming the economic growth rate of 0.5% in the fourth quarter overlooked. The growth rate unchanged from the previous estimate and the corresponding estimate of economists.
However, the level of business investment fell at a rate which is the fastest in nearly 2 years, pressured by ppenurunan in the transportation equipment sector, worsen the negative sentiment dragging down the pound in recent days.
The current political uncertainty affects the sentiment against sterling as Britain tried to qualify and avoid Brexit, according to one of the market participants. Analysts said the uncertainty of Brexit will suppress the flow of investment and triggered a widening current account gap, which is now one of the largest among developed countries at the level of 5% of GDP.
Technically,
Resistance: 1.4015 1.4060 1.4100 High / Low: 1.3979 / 1.3953
Support: 1.3940 1.3900 1.3850 Running Price: 1.3973
Comment: For intraday trade today suggest Buy at the level of 1.3950 stop loss at the level of 1.3914 targets at the level of 1.4048.
Gold Stable On Profit Taking
Gold ended the US session unchanged in yesterday’s trading session the two sides. Some early profit taking and chart consolidation were offset by fresh safe-haven demand and traders to buy at the beginning of the price.
Comex April gold was last down $ 1.00 at $ 1,238.00 per ounce. March Comex silver last down $ 0.122 at $ 15.17 per ounce.
Most world stock markets rose yesterday, the corrective rebound from the selling pressure saw the last few days. US stock indexes were mixed in early trading Thursday afternoon.
World equity markets continue to rely on daily price movements of crude oil. Nymex crude oil futures slightly lower Thursday and just below $ 32.00 per barrel. A Wall Street Journal survey showed large investment banks are less confident that oil prices will recover soon.
The banks expects crude prices to average in 2016 of $ 39.00 per barrel. That’s down $ 11 from the same survey taken in January.
China’s stock market was an exception and sold off sharply Thursday on fears about the health of China’s economy, which is the world’s second largest. Shanghai stock index closed down 6.4% on the day.
For whatever reason, the other world equity markets decided to ignore the sharp decline in China’s stock market-for now. China is still the focal point for world traders and investors. On Friday the Group of 20 industrialized nations met, and issues of China’s economy likely to be the main topic.
A news report out yesterday said traders and investors around the world have significantly increased their purchases of exchange traded gold-backed funds (ETFs) and other gold-based derivatives.
The price of gold futures have rallied about 17% so far in 2016. The report highlighted that only a short time the public has really changed its tune about investing in gold from bearish to bullish.
“Smart money” in the market can be read as an indication of the market price of gold may have gone too far, too fast, and need some time to consolidate now.
Technically,
Resistance: 1239.20 1241.10 1243.50 High / Low: 1237.50 / 1231.10
Support: 1234.70 1231.00 1229.10 Running Price: 1237.40
Comment: For intraday trade today suggest Buy at the level of 1232.50 stop loss at the level of 1230.00 the target at the level of 1242.50.
