Nikkei Facing Pressure
Japanese stocks in early trading Thursday (07/01) negative opened, tracked down -129.63 or -0.71 percent at 18,061.69. The weakening of the yen’s rise Nikkei pressing depressed shares of exporters in the Japanese market.
This morning the yen strengthened against the US dollar observed. The yen rose as a safe haven currency amid global growth uncertainty and geopolitical tensions. Observed exchange rate this morning USDJPY pair fell -0.19% to 118.25.
Strengthening Yen depress stock trading major exporters. In the morning stock trading, shares of major exporters such as Toyota, Nissan and Sony traded down 0.5 percent to 4.49 percent. Exporters could be hit as the yen rose because of the weight on the income earned.
Other news Sony and Fujifilm are considering a joint bid to acquire a subsidiary of Toshiba medical equipment, Toshiba Medical Systems, as the company continued with the restructuring of troubled electronics. Among other reported bidders Hitachi, Canon, General Electric’s health business, and the Samsung group. Toshiba shares rose 1 percent.
As for Nikkei futures observed negative, down -190 points or -1.05% at 17.990, down compared to the previous closing at 18.180.
Technically,
Resistance: 18040 18110 18200 High / Low: 18160/17885
Support: 17900 17810 17 620 Running Price: 17 940
Comment: To intraday trade today suggest Sell at the level of 17 975 stop loss at the level of the target at the level of 17 710 18025.
Pounds Ending Weakens
Sterling fell to its lowest level since April against the dollar on Wednesday, with the data from the dominant services sector in the UK showed a strong growth rate in the current focus of investors focused on the debate about “Brexit” of Europe. UK service sector PMI by Markit / CIPS fell to 55.5 last month from 55.9 in November and compared to estimates of a decline to 55.6 after reaching the fastest pace in four months in November. Against the euro, sterling traded steady.
Overall sterling is quite weak and data services sector seems to be not much help, according to a strategic one. The main driver of sterling is expected rate hike in the UK which is currently quite small chances, he added. The UK economy Growing at the slowest pace in three years in the third quarter of 2015, grew by 0.4%, according to data last month. The inflation rate was also depressed and wage growth slowed, reinforcing the view that the Bank of England will not rush to raise interest rates at least until the end of 2016 or early 2017.
Technically,
Resistance: 1.4680 1.4730 1.4800 High / Low: 1.4639 / 1.4626
Support: 1.4600 1.4550 1.4500 Running Price: 1.4631
Comment: To intraday trade today suggest Buy at the level of 1.4610 1.4575 stop loss at the level of the target at the level of 1.4707.
Gold is Still Being Positive
Trading commodity futures exchange on Thursday (7/1), the price of gold and silver was observed traded higher after successfully recorded a rise in the previous session.
Ongoing trade in the Asian session, gold futures for February delivery rose of 0.02% was observed at the level of $ 1.092.10 per troy ounce on the Comex division of the US. Meanwhile, silver futures for March delivery rose 00:17% observed at the level of $ 13,990 per troy ounce.
The price of gold continues to try to continue to rise this morning after successfully recorded great results in the previous session. Factors driving this increase has been influenced by the increased value of a safe haven as investors seek protection related North Korea said it had conducted a nuclear test and geopolitical tensions between Saudi Arabia and Iran.
Support which also pushed up the price of gold has emerged as an official report released by the Institute for Supply Management said that the Non-Manufacturing PMI US decline, the seasonally adjusted 55.3 in December from 55.9 in November.
Nevertheless, the increase experienced by the price of gold was limited due to an official report released by Automatic Data Processing said that the growth in US jobs increased by 257K in December.
Hose 15 minutes later, a data released by the Bureau of Economic Analyst said that the US trade deficit has decreased, the seasonally adjusted -42.4B in November.
Technically,
Resistance: 1097.10 1099.60 1102.40 High / Low: 1096.70 / 1091.00
Support: 1093.70 1090.00 1087.40 Running Price: 1095.20
Comment: To intraday trade today suggest Buy at level 1090.10 1088.50 stop loss at the level of the target at the level of 1100.10.
