Tax-Deferred Expectations Boost Nikkei
Japanese stocks, the Nikkei, gained at the beginning of this week (05/16/2016), the expected sales tax hike postponement sustain market movements. The yen weakened against the dollar also gave a positive sentiment.
The Nikkei business daily on Saturday reported the Japanese Prime Minister, Shinzo Abe, has decided to postpone the sales tax hike in April next year for fear it would interfere with the Japanese government’s efforts to encourage inflation. Abe is expected to announce the delay at the G7 meeting in Japan on 26 and 27 May.
While the strong yen on Friday observed to weaken, is around 108.87 per dollar, off an intraday low of 108.46.
Technically,
Resistance: 16630 16700 16 770 High / Low: 16625/16370
Support: 16500 16420 16250 Running Price: 16560
Comment: For intraday trade today suggest Sell 16650; stop loss 16710; targets 16310.
Yen Weakens Against US Dollar
Yen in early trading last week fell against the US dollar, driven from the economic news from China that demand is reduced, Monday (16/5).
USDJPY rose a 0.12% at 108.75 level. Chinese investment, factory output and retail sales added doubts about economic stability, because all of the data is falling lower.
While other data. 10-year bond yields fell one-month low of 1.70 percent on Friday, showing debt investors are reluctant to price in a higher level with a global backdrop of low inflation and low growth. Liquidity also tend to be quiet due to some of the central banks of Europe closed for holidays whit monday.
Technically,
Resistance: 109.20 109.60 110.00 High / Low: 108.90 / 108.51
Support: 107.50 108.00 108.40 Running Price: 108.87
Comment: For intraday trade today suggest Buy at the level of 108.25; stop loss at the level of 108.00; the target at the level of 109.70.
Gold Detained; Weekly Down 1.7 Percent
Gold prices were detained gains in late trade on Friday last weekend because of the strong US dollar after US economic data provide bright prospects for the economy.
US retail sales jumped 1.3 percent last month, the biggest increase since March 2015 and the increase is greater than the 0.8 percent expected by economists.
The US dollar hit a two-week high against a basket of currencies on Friday, posting a best two-week performance since February, making dollar-denominated assets like gold more expensive for holders of other currencies.
Spot gold prices, which rose 1 percent in early trade, cutting into profits to $ 1,272.26 per ounce, up just 0.72 percent. It was down 1.1 percent on Thursday. The gold price has dropped 1.7 percent this week, the biggest weekly decline since the week ended March 25.
While the price of gold futures for June delivery settled up $ 1.50 at $ 1,272.70 and was last up 0.19 percent to $ 1,273.60 per ounce.
US dollar also received a boost after two US Federal Reserve officials said the central bank should raise rates to economic improvement.
Gold has climbed 20 percent this year after a series of weak economic data in the United States and elsewhere eased expectations of rising short-term US interest rates.
Reflecting the sustained optimism towards gold, holdings SPDR Gold Trust, the world’s largest exchange-traded fund, stood at 27.17 million ounces on Thursday, the highest since November 2013.
While Spot silver prices rose 0.76 percent to $ 17.09 an ounce, platinum prices rose 0.48 percent to $ 1,049 and palladium fell 0.39 percent $ 590.70.
Technically,
Resistance: 1275.50 1277.80 1279.20 High / Low: 1274.90 / 1272.20
Support: 1270.00 1266.40 1264.10 Running Price: 1273.40
Comment: For intraday trade today suggest Sell 1275.90; stop loss at the level of 1277.40; the target at the level of 1265.90.
