Nikkei Ends Weaker
At the end of trading Nikkei closed down 29.32 points, or 0.2 percent, at 18,886.70, depressed negative performance shares, especially exporters.
At the end of trading the Nikkei, shares of McDonald’s Japan fell 7.9 percent after the Nikkei business daily reported on Monday that the parent company in the US is considering selling shares in the Japanese business.
Toshiba shares fell 12.3 percent, extending a 9.8 percent decline on Monday. After the market close Monday, Toshiba said it expects to post a fiscal-year net loss of 550 billion yen ($ 4.54 billion), larger than the Dow Jones reported on the weekend that cited a person close to the matter said the loss would be about 500 billion yen.
While shares of other major electronics exporters were also lower, with Sony down 1.0 percent, Panasonic fell 0.7 percent and Sharp fell 2.5 percent.
Brewer Kirin shares fell 5.8 percent after the company said on Monday it expects full-year net loss of ¥ 56 billion due to the poor performance of the operations in Brazil. This is the company’s first annual loss since 1949, when the shares were listed.
Taisei shares tacked on 1.6 percent after the announcement Tuesday that the design of a consortium it leads will be used for the new stadium for the Olympics.
As for Nikkei futures were also observed in the negative zone, down 30 points or 0.16% at 18,840, up from the previous trading at 18.870.
Japanese markets will be closed on Wednesday for the emperor’s birthday. Trading will resume on Thursday, where on Thursday morning there will be the BoJ Monetary Policy Meeting Minutes, which results treatise provide a positive stimulus will strengthen the Nikkei index.
Technically, the index on the trading session today, Wednesday (23/12) likely to weaken, test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume tends to increase, an early indication of bullish index. In addition, RSI, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the level of support in advance ie 18 820 and 18750. If it fails at 18900, then the next index is expected to tend to retest the resistance level 18950 and continued until the possibilities are in the 19010 area.
Pounds Experiencing a Pressure Back Fallout
Negative sentiment for sterling has not stopped, after scoring a six-day decline in a row, this British currency weakened again after the release of the data the UK budget deficit. Data showed the UK government borrowed £ 14.2 billion in November to cover expenses. The amount is up 10% from the same period the previous year.
Until the eighth month of the fiscal year, the British government has borrowed £ 66.9 billion and almost reached projections for the fiscal year ended March amounted to £ 68.9 billion.
Some negative data for the previous sterling, among others, low inflation and slowing wage growth that made market participants expect the Bank of England will not follow the US Federal Reserve in the near future. Besides geopolitical factors “brexit” also provide pressure.
Technically, the trading session today, Wednesday (23/12), pound sterling-dollar pair has an opportunity to move in a negative trend.
The weakening of the pound sterling mainly expected soon reexamine the minimum support at 1.4780 and maximum 1.4700. Meanwhile, if the pound sterling was able to break and hold above 1.4840, then the other alternative scenario that is Pound chance to test resistance in 1.4890 and 1.4950 area.
Gold Weakens Continuing Losses
Gold swept up in Asian trade on Wedn esday (23/12) continued from the previous day losses.
Division of the New York Mercantile Exchange, spot gold for February delivery fell 0.6% to $ 1,073.46 per ounce. Bullion failed to get a rise of soft dollars, as of the weak US housing data and a modest rebound in oil prices. US Dollar slipped against the currencies following the steep decline in existing home sales in November.
US home sales decline in five years in November. Other data on the previous day showed the US economy grew quite healthy in the third quarter, triggered by strong consumer sentiment. While elsewhere, oil prices stabilized after previously moving lower.
Trade became quiet as liquidity thinned before the Christmas holiday. While Japanese markets were closed because they were celebrating the birthday of the emperor. Investor sentiment towards gold remained largely bearish, all of which depend on the fate of the outlook for the dollar and rise in US interest rates in the next year.
Fund assets are traded on gold is near seven-year low. On the other Comex trading, spot silver trading down to a level of $ 14,240 -0525 troy ounce, copper also dragged down -0.09% at $ 2,107 a troy pound.
Technically, gold in today’s trading session on Wednesday (23/12) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Band begins to widen, thus giving impetus for gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1068.33 and re-test the maximum level of 1063.73. However, if the price of gold is able to break and hold above 1073.50, the predicted gold prices could potentially test Resistance ie, 1075.40 and 1080.72.
