Nikkei Weakens After BoJ Data
Japanese stocks, the Nikkei sharply lower in early trading this past week. Business activity data released by the Bank of japan (BoJ) gives tekenan to the exchange.
The manufacturing index BoJ Tankan released this morning showed a decline in the first quarter of this year from the previous quarter. Sentiment large manufacturing companies dropped to 6 of the previous 12. The drop was larger than economists forecast by 8.
The same thing happens in the non-manufacturing sector fell to 22 from 25 the previous quarter and lower than the estimate of 24.
Market participants are now waiting for China’s manufacturing activity data this morning and US employment data later that night.
Spot Nikkei shed 1.7% to 16474.19.
Technically,
Resistance: 16580 16680 16 770 High / Low: 16785/16500
Support: 16440 16350 16300 Running Price: 16 525
Comment: For intraday trade today suggest Buy at the level of 16430 stop and reversal if break below 16380 targets at the level of 16710 and reversal targets 16250.
Euro Boost Up
Signals important US industrial situations such as Unemployment Claims recorded bouncy above forecasts. The situation is more clearly gave the alarm about the fate of the US domestic economy. Across the continent, the Euro gets stronger supply of energy to go back through the psychological ceiling.
Broke down again struck the labor sector. In some of the previous period, where there have been corrections number of applicants for unemployment benefits with significant momentum this time must be re-experienced a surge and it far exceeded analysts’ estimates. Count them to change the number of initial Unemployment Claims only be in the range of 266 thousand, but ultimately through the latest data, all expectations countered by the emergence of accretion results in Area 276 thousand applicants.
Although until now the psychological limit has still not exceeded both at the level of 300 thousand but the policy makers in the field of economics has been duly kept close watch on the state of the sector’s workforce. With the diversity of situations in the various sectors that are still not apparent stability, it is not possible weakness-weakening is going to spread to the labor sector.
Not that conditions today make Uncle Sam’s land at stake, as is often revealed by officials of the Fed that the sector’s human resources has become a major issue if it is associated with monetary policy. By keeping the jobless total stood at below five per cent, for example, is expected to provide psychological stimulation for other sectors to remain viable and still see their hopes of economic wheels minimal improvement in the domestic US alone.
Technically,
Resistance: 1.1420 1.1460 1.1500 High / Low: 1.1386 / 1.1373
Support: 1.1340 1.1300 1.1250 Running Price: 1.1382
Comment: For intraday trade today suggest Sell at the level of 1.1430 stop loss at the level of 1.1466 and the target at the level of 1.1332.
Crude Oil Prices Rise
US crude oil prices closed slightly higher in late trading yesterday, and recorded their biggest monthly gain in nearly a year and also the quarterly increase, helped by the weak dollar and data showing a drawdown in US crude inventories.
The US dollar reached its lowest point in mid-October, making the oil commodities denominated in US dollars are more attractive to holders of the euro and other currencies.
Data from market intelligence firm Genscape showed 807 496 barrel drawdown in inventories at Cushing, Oklahoma, the delivery point for US crude futures in the week to March 29, traders said.
Inventories at Cushing have receded from a record high for two consecutive weeks, with US government data on Wednesday showed the withdrawal of 272 000 barrels in the week ended March 25.
Total US crude oil stockpiles, however, rose 2.3 million barrels last week to 534.8 million barrels, a record high for the seventh consecutive week.
US crude futures front-month contract closed up 2 cents, or 0.05 percent, at $ 38.34 a barrel, after falling to $ 37.57, the lowest since March 16. WTI crude oil also recorded an increase of 13 percent in March and 3 percent for the first quarter of 2016.
Analysts also predicted major oil producers meeting in Doha on 17 April to discuss the freezing of production will be far short of expectations.
“There is a clear risk of disappointment and setback while the price before or immediately after the Doha meeting,” Carsten Fritsch, commodities analyst at Commerzbank, told the Reuters Global Oil Forum.
Technically,
Resistance: 38.60 39.10 39.60 High / Low: 38.46 / 38.11
Support: 38.00 37.50 37.00 Running Price: 38.22
Comment: For intraday trade today suggest Sell at the level of 38.80 stop and reversal during a break above at the level of 39.10 targets at the level of 37.70 and target of reversal at the level of 39.96.
