Nikkei Worried By Euro-Zone Economy
Nikkei fell after Der Spiegel magazine reports made investors increasingly worried about the outlook for the euro-zone economy. The leading magazine in Germany wrote that the German government believe the euro zone could face a Greek exit if needed.
Der Spiegel reported that the German government saw the release of Greece as being almost unavoidable if Syriza opposition party won the elections next January 25. The report makes investors anxious face of a potential Greek exit from the euro-zone which could worsen the euro-zone economy is slowing now.
On the corporate side, Panasonic shares fell 1.0% after the Nikkei newspaper reported that the company plans will buy a majority stake in the company Singapore Technologies RFNet. Takashimaya shares fell 0.10% after local media write the company will partner with major hospitals in Japan to provide medical tourists. Nikkei futures fell 1.26% and is now trading at 17 280.
Technically, the index on the trading session today, Monday (05/01) is likely to strengthen, test positive trend. At the M15 chart bullish hammer formation provides opportunities for the index to move upside. However, the volume of which is likely to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first resistance level of 17300 and 17250. If it fails in 17340, we then estimated the index tends to retest the support level of 17 380 and proceed to the possibility of being in the 17430 area.
Euro Weakens On Draghi Statement
The euro extended losses to almost its lowest level in nine months against the dollar on prospects that the European Central Bank will start buying government bonds on a larger scale to overcome deflation.
Currency bloc of 18 countries fell by 0.4% to $ 1.1960 at 08:40 pm, after earlier touching the lowest level since 2006. Marer greenback strengthened against 11 of 16 major currencies, while the yen strengthened.
Speculation of European policy makers should expand its monetary easing policy intensified in recent days after ECB President Mario Draghi said in an interview that he could not rule out the risk of deflation in the Euro area. With anti-austerity party led the survey results before early elections Greece on 25 January, the magazine Der Spiegel reported that the German view of the potential release of the southern European countries look more open. Germany may record slower inflation rate today.
“The reason to sell the euro is quite clear over the weekend, with Draghi closer to QE and deep anxiety about the political situation in Greece,” said Sean Callow, a currency strategist at Westpac Banking Corp. in Sydney.
Technically, the trading session today, Monday (05/01), the pair Euro-dollar likely to move in the negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.1900 and 1.1850 maximum. Meanwhile, if the Euro is able to break and hold above 1.1958, then the other alternative scenario that Euro chance to test resistance in the area 1.1980 and 1.2130
Early Trade 2015, Gold Rises 0.2%
Gold futures edged higher on Friday, February gold contract rose 0.2% due to weak European markets and the US offset the strengthening dollar and falling oil prices, but the precious metal still recorded a decline in three consecutive weeks. Still her off the Chinese and Japanese markets create liquidity in the market is low. Gold ended the year 2014 with a weakened nearly 2% after falling 28% in the previous year.
Slowdown in global manufacturing activity makes European and US exchanges weakened. The Institute for Supply Management reported the US manufacturing activity index in December to 55.5, from 58.7 in November. Figures in December was the lowest in the last six months.
HSBC on Wednesday reported China’s index of manufacturing activity fell to 49.6 final of 50 in November, while the report of the Government of China showed manufacturing activity slowed to 50.1 from 50.3 previously. Meanwhile Markit index of manufacturing activity final report euro zone fell to 50.6 in December is lower than the first release of 50.8. And from the UK manufacturing activity was also reported melambay be 52.52 from the previous 53.3, and break the expectation of rising to 53.7 by economists.
Anticipated increases in interest rates by the Federal Reserve made the appeal dollar higher, making the appeal of gold fade potentially re-pressing movement of the precious metal. Gold on Friday’s trading to close at $ 1,187.95 per troy ounce, with daily highs $ 1,194.88, and the lowest $ 1,167.43.
Technically, gold trading session today, Monday (05/01) the potential reversal, tested positive trend, but prone to taking profit. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Bands that began to shrink, thus giving impetus to the gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1195.10 and re-test the maximum level of 1200.87. However, if the price of gold was unable to break and stays below 1190.10 then estimated the price of gold could potentially test the 1187.78 and 1185.40 Support.
