Japanese Stocks Closed Positive
At the end of trading yesterday the Japanese stock market, the Nikkei index ended positive, up 92.80 points, or 0.55 percent, at 17,048.37. Strengthening weaker yen pushed the Nikkei index and the optimistic statements of the Minister of Finance.
Japan’s economy minister Akira Amari said the decline in Japanese shares in recent times is due to external factors such as concerns over emerging markets and lower oil prices, but Japan’s economic fundamentals remain solid, according to Reuters.
Dollar-yen pair traded 0.15 percent higher at 117.73 in the previous session close of 117.31. Results help improve some key export stocks such as Nissan, Sharp, Toyota and Sony, which all closed up between 0.92 percent to 2.44 percent. A weaker yen is usually considered to be positive for Japanese exporters because it increases the revenue when converted back into local currency.
Whereas oil stocks closed mixed. Inpex rose 1.21 percent and Japan Petroleum rose 1.19 percent. Cosmo Oil, down 1.17 percent. Reports said the oil company bought a cargo of crude oil, about 300,000 barrels, so that the first purchases by Japanese buyers four decades since the ban on most US exports of crude oil ended.
Shares of Nippon Steel & Sumitomo Metal Corp rose 3.2 percent to ¥ 2,166. Shares of major shipper Nippon Yusen K.K. rose 2.3 per cent to Y271.
Among other stock movers, shares of Nintendo Co. rose 9.1 percent to Y15,990, following a decline of 13 per percent this year, helped by the recovery prospects for the 3DS handheld gaming device and hope for the expansion of social games.
As for Nikkei futures also observed rose 120 points or 0.70% at 17.180, up from the previous trading at 17.060.
Technically,
Resistance: 17020 17100 17 180 High / Low: 17065/16870
Support: 16900 16720 16650 Running Price: 16 945
Comment: To intraday trade today suggest Sell at level stop loss at the level of 16 980 17 035 16 710 at level targets.
Carney Warning Send Sterling to Low Level
Sterling touched a 7-year lows versus the US dollar yesterday after the Bank of England said it has not had a definite time to raise interest rates, while warned about the spread of the impact of the economic slowdown in China.
Mark Carney said that global and domestic growth has proved weaker than expectations in the middle of last year, when he predicted the decision about the timing of interest rate hikes will be seen more clearly in the beginning of 2016. Carney also said that if he wants to see economic growth and strong inflation before raising interest rates.
Cable had previously moved positively after data showed UK inflation broke estimated by economists to move up to the highest level in almost a year in December. Office for National Statistics said annual consumer price inflation accelerated to 0.2% last month.
Technically,
Resistance: 1.4190 1.4240 1.4300 High / Low: 1.4178 / 1.4163
Support: 1.4110 1.4050 1.4000 Running Price: 1.4167
Comment: To intraday trade today suggest at level Sell 1.4175 1.4210 stop loss at the level of the target at the level of 1.4080.
Gold Pressure On Profit Taking Action
Gold prices ended the US trading session with a modest decline to some profit-taking pressure amid rising risk appetite among traders and investors earlier this week.
However, metal prices rose from intraday lows on some bargain hunting and the US dollar index retreated from intraday highs.
Risk aversion in the world market is not high on Tuesday, and there were reports of China in the show’s second largest economy in the world has a growth rate of gross domestic product of 6.9% in 2015, higher than the estimated market observers but still in the growth rate of the most slow in China in 25 years. Mostly, world stock markets spurred by news China. US stock indexes rose but down from an intraday high in afternoon trading.
There unfavorable economic data from the EU on Tuesday. Euro zone consumer price inflation was at zero percent in December, the month-on-month and rose 0.2% year on year. In addition, the German ZEW economic expectations index fell to 10.2 in January from 16.1 in December. However, the January reading was higher than expectations.
The IMF on Tuesday cut its global economic growth forecast, following a slowdown in growth in China and concerns about financial contagion in emerging markets. Estimates of world economic growth to 3.4%, down 0.2% from the last estimate.
Crude oil fell to a 12-year to $ 28.36 per barrel. The International Energy Agency said oil prices could still fall further this year due to oversupply in the world market. IEA says there are more than 1 million barrels per day of supply over demand is added to the world oil stocks.
US economic data released on Tuesday is quite mild, including NAHB housing index and Treasury international capital data. These reports do not affect the market.
Technically,
Resistance: 1086.10 1090.60 1094.40 High / Low: 1089.90 / 1087.30
Support: 1086.70 1083.00 1080.40 Running Price: 1088.60
Comment: To intraday trade today suggest Buy at level 1083.10 1081.00 stop loss at the level of the target at the level of 1093.10.
