Yen Strengthening Tokyo Shares End Pressing
At the end of the trading day yesterday the Japanese stock market, the Nikkei index ended down 143.59 points, or 0.37 percent, at 16,052.05. The weakening of the yen’s rise triggered Nikkei index.
In yesterday’s trading, the Japanese yen remained strong against the dollar, with the dollar-yen pair that are in the range of about 112 at 112.44. While the yen typically strengthens negative for the stock market is putting pressure on exporters since it lowers their overseas profits when converted into local currency.
At the close of trading yesterday the shares are pressing Nikkei stock Maruha Nichiro Corp which fell -4.92%, shares of NTT DOCOMO Inc. fell -4.19%, KDDI Corp shares fell -3.88%, shares of Nippon Telegraph & Telephone Corp fell -3.57%, shares of Shinsei Bank Ltd. fell -3.55%.
As for the Nikkei index futures tracked down -100 points or -0.62% at 16,000, down from the previous trading at 16.100.
Technically,
Resistance: 15850 15930 16060 High / Low: 15855/15715
Support: 15700 15630 15560 Running Price: 15775
Comment: For intraday trade today suggest Buy at the level of 15680 stop 15625 and reversal if break below level targets Buy at the level of 15925 and targets at the level of 15500 at level of reversal.
Ifo Report Pressing Euro Trade
The euro touched a three-week lows after German business sentiment showed the biggest decline since 2011. For the first time since early February, 1:10 euro touched bottom and is now trading down about 0.2% against the US dollar.
Ifo expectations index suffered the biggest fall in five years. Index dipped below the 100 level for the first time since 2014. Analysts said this figure should be wary because the Ifo index several times to signal a recession is very accurate.
Yesterday, the Euro was also pressured by disappointing economic reports. This month, the manufacturing sector in Germany, the country’s largest economy of Germany, recorded a decrease of expansion almost touching the threshold of 50. Growth in Germany’s manufacturing sector slowed from 52.3 in January to 50.2 this month. The number 50 is the threshold that separates growth to slow down. Euro zone economic indicators released recently supports the argument of the European Central Bank (ECB) needs to increase stimulus as soon as possible at a meeting in March.
Technically,
Resistance: 1.1050 1.1090 1.1130 High / Low: 1.1024 / 1.1013
Support: 1.1000 1.0940 1.0900 Running Price: 1.1015
Comment: For intraday trade today suggest Sell at the level of 1.1050 stop loss at the level of 1.1086 the target at the level of 1.0953.
Oil Closed Down Sharply
Crude oil futures fell sharply in yesterday’s session due to bearish comments from officials in Saudi Arabia and Iran does not provide much clarity regarding the reduction of their production.
On the New York Mercantile Exchange, WTI crude oil for April delivery traded between $ 31.66 and $ 33.52 per barrel before settling at $ 31.81, down 1.58 or 4.73%. On the Intercontinental Exchange, Brent crude oil for April delivery traded between $ 33.10 and $ 35.09 per barrel before closing at $ 33.24, down 1.43 or 4.18%.
Speaking in front of the CERAWeek Energy Conference 2016 in Houston, Saudi Arabian Oil Minister Ali al-Naimi reiterated on Tuesday morning that they will not cut production is lower than the current level.
Last week, Saudi Arabia agreed in principle with Russia and two other OPEC members to freeze production at its January level. Saudi Arabia, the world’s main exporter, supplying about 10.2 million barrels per day in January, down slightly from the record high in June is 10.5 million barrels per day.
Al-Naimi’s comments came after Iranian counterpart, Bijan Zanganeh, said that the plan was “ridiculous,” according to the Iranian news agency Shana. The deal is dependent on approval from Iran. The day after the announcement of the implementation of last month, Iran is expected to increase production and export as much as 1 million barrels per day over the next year.
Technically,
Resistance: 31.70 32.10 32.70 High / Low: 31.49 / 31.23
Support: 31.00 30.60 30.00 Running Price: 31.38
Comment: For intraday trade today suggest Buy 31.00 stop loss at the level of 30.70 targets at the level of 32.15.
