Japanese Stocks End Negative
At the end of trading Japanese stocks earlier in the week on Monday, the Nikkei index ended down -161.65 points, or -1 percent, at 16,026.76. A weaker Nikkei and the yen’s rise triggered negative economic data.
At the end of Japanese stocks trading on the currency market, the yen strengthened against the dollar, with the exchange rate pair USDJPY pair trading down 1 percent at 112.83 per 02:25 HK / SIN. The strengthening of the Japanese Yen typically negative for the stock market is putting pressure on exporters since it lowers their overseas profits when converted into local currency.
While Japan’s economic news, economic data released this morning Industrial Production (MoM) Prel January that record the results of 3.7%, up from the economists’ expectations of 3.3%, and increased compared to the previous -1.7% decline. However, on an annual basis in January Prel Industrial Production data is recorded negative results -3.8%, down from the previous -1.9%.
Likewise Data Retail Sales (YoY) in January Japan that record the results of -0.1%, down compared to the economists’ expectations at 0.5%, but rose from the previous -1.1%.
While the data released yesterday Construction Orders (YoY) in January which posted the results of a sharp decline -13.8%, down considerably from the previous 14.8%.
While there are positive data on Housing Starts (YoY) in January that record the results of 0.2%, up from 0% economists’ expectations, thus also rose from the previous-1.3%.
At the end of yesterday’s trading the shares are pressing Nikkei stock index Sapporo Holdings Ltd which fell -5.87%, NH Foods Ltd shares fell -4.89%, shares of Shin-Etsu Chemical Co. Ltd. fell -4.74%, stock Keisei Electric Railway Co Ltd fell -4.02%, shares of Chubu Electric Power Co. Inc. fell -3.91%.
As for the Nikkei index futures fell sharply observed -330 points or -2.03% at 15.930, up from the previous trading at 16.260.
Tuesday will be released Japanese economic indicator data, namely:
Unemployment Rate in January, which is indicated to be the same as the previous results.
Jobs / application ratio in January, which is indicated to be the same as the previous results.
Household Spending (YoY) in January, indicated decreased from the previous decline.
Nikkei Final Manufacturing PMI in February, is expected to be down from the previous results.
The results of economic indicators data were mostly negative, if realized could potentially weaken the Yen.
Technically,
Resistance: 16030 16110 16200 High / Low: 16090/15935
Support: 15900 15820 15 770 Running Price: 15960
Comment: For intraday trade today suggest Buy at the level of 15870 stop and reversal if break below 15815 level targets at the level of 16110 and reversal targets at the level of 15700.
Economic Data Weight the Aussie
Aussie weakened against the dollar in early trade today, weighed poor economic data Australia, in addition to the current market players await the results of the monetary meeting the Reserve Bank of Australia (RBA).
Australian Bureau of Statistics reported building permits in January, down 7.5% from the previous month, well below the 2.9% drop forecast by economists. While the increase in December was also revised down to 8.6% of the initial release of 9.2%.
The same agency also reported that Australia’s current account deficit in the fourth quarter of 2015 widened to A $ 21.1 billion, from the previous quarter deficit of A $ 18.1 billion, and is larger than the estimated deficit of A $ 19.8 billion.
RBA released the results of a monetary conference at 10.30 am, followed by a press conference by the governor Gleen Stevens. The Australian central bank expected to keep interest rates at 2.0%, but the last time the RBA says it has room to cut interest rates due to low inflation in Australia.
Technically,
Resistance: 0.7160 0.7200 0.7250 Prev. High / Low: 0.7151 / 0.7122
Support: 0.7100 0.7050 0.7000 Running Price: 0.7122
Comment: For intraday trade today suggest Sell of the target at 0.7160 stop loss at the level of 0.7196 the target at the level of 0.7062.
Gold Achieves Best Monthly Performance
Gold rose in the last trading day in February due to weakening stock markets and the US dollar. The greenback slipped back against the yen after US manufacturing activity slowed in February, triggering concerns about a recession.
Investor appetite for gold also emerged after the majority of global stock markets ended lower even after China’s central bank launched a stimulus and gains in the oil market. Precious metals posted the best monthly performance in four years as the shocks in global stock markets and enhance the charm of safe-haven gold.
Assets in the SPDR Gold Trust, Exchange-Traded Fund (ETF) based on the world’s largest gold, rose to 762.41 tonnes on Friday, its highest level in over a year, indicating demand is still strong. The price of gold in Shanghai Gold Exchange was also higher at about $ 2 per ounce, indicating buying interest from the largest consumer of gold, China.
Gold prices ended the day up 1.24% to $ 1,238.10 per troy ounce compared to the closing price of the previous session.
Technically,
Resistance: 1242.10 1244.60 1246.40 High / Low: 1241.40 / 1237.90
Support: 1238.70 1234.00 1232.40 Running Price: 1240.50
Comment: For intraday trade today suggest Buy at the level of 1235.50 stop loss at the level of 1233.00 the target at the level of 1245.50.
