Nikkei Weakens As Oil Prices Fall
Japanese stock indexes fell early this week due to weakening oil prices and also due to the strengthening yen after negotiation talks restrictions on production levels in Qatar ended without agreement.
Nikkei stock index fell by 395 points or 2:36% at 16.340 at 08:00 pm. USDJPY fell as much as 0.69% to 108.05 and WTI oil prices fell as much as 5.6% at $ 38.10.
Analysts at Pengana Capital Ltd. in Melbourne said that we see fluctuations as markets reacted to the fall in oil prices. It has been the trigger for the action to take in some of the equity. The market will probably move down further as corporate earnings reports will probably not help weakening stock index lately.
Technically,
Resistance: 16420 16490 16 620 High / Low: 16430/16235
Support: 16300 16220 16150 Running Price: 16365
Comment: For intraday trade today suggest Buy at 16270 stop and reversal if break below 16220 level targets at the level of 16550 and reversal targets 16130.
Aussie Weakens Against US Dollar
Aussie weakened lower after major oil producers failed to reach an agreement in the freeze output in Doha. Monday (18/4).
AUDUSD weakened 1:13% at the 0.7637 level. Global oil producers from the countries of Saudi Arabia, Russia, Kuwait, and other non-OPEC members Iran met with the agenda to discuss freeze output, but most broke up without agreement.
Saudi Arabia insisted there could be no agreement unless Iran suspended production, but in fact Tehran did not attend the meeting, besides that, tomorrow morning there is also minutes from the Reserve Bank of Australia and the data on house prices in China in March on an annual basis.
US dollar index, which measures the strength of the greenback against other major currencies, was up at 94.68 level.
Technically,
Resistance: 0.7700 0.7750 0.7800 Prev. High / Low: 0.7673 / 0.7629
Support: 0.7610 0.7560 0.7510 Running Price: 0.7663
Comment: For intraday trade today suggest Sell 0.7700 stop loss at the level of 0.7736 the target at the level of 0.7602.
Weekend Gold Prices Rise
Gold prices rose at the end of last weekend’s closing after three days of decline due to the weakening US dollar and stock markets, but bullion was headed for its first weekly decline in three weeks.
Harge gold has climbed to three-week high on Tuesday, but the retreat for the world’s stock rose on Thursday to its highest level since the end of December, driven by strong Chinese economic data and a spike in oil prices earlier this week.
Spot gold prices rose 0.54 percent at $ 1,233.66 per ounce, but decreased 0.6 percent for the week.
While the price of US gold futures for June delivery closed up 0.7 percent at $ 1,234.60 an ounce and was last up 0.8 percent at $ 1,235.80 per ounce.
Gold prices have stabilized after posting its biggest quarterly rise in nearly 30 years in the first quarter, boosted by expectations that the withdrawal of the US Federal Reserve will push forward with some interest rate hikes this year.
Chicago Federal Reserve President Charles Evans said the Fed appears to be on track to at least two rate hikes during the remainder of this year. A Reuters poll showed the Fed will raise rates twice this year, most likely starting in June.
Assets in the SPDR Gold Trust, the largest gold holdings in the world that is backed exchange-traded fund fell to a one-month low on Thursday.
Among other precious metals, silver futures are on track to post a weekly gain of 5.8 percent, the biggest jump since the May. They rose 0.51 percent at $ 16.25 an ounce, after touching $ 16.37, the highest since June 2015.
Platinum futures toward the third weekly gain in a row but was down 0.6 percent at $ 987 per ounce, while palladium futures are up 1.56 percent at $ 565.25.
European car sales rose 5.7 percent in March, industry data showed, helped by discounts and other incentives. Platinum and is used in autocatalysts to clean exhaust emissions.
Technically,
Resistance: 1236.20 1240.60 1242.40 High / Low: 1239.30 / 1233.10
Support: 1232.10 1230.00 1228.10 Running Price: 1234.40
Comment: For intraday trade today suggest Buy at 1231.50 stop loss at the level of 1230.00 the target at the level of 1241.50.
