The Nikkei Ends Stronger
Nikkei closed higher as it is propelled by a weaker yen and a rally in world oil prices. The broader Topix index rose 1.1% to a level of 1335.85 at the close of trading, while the Nikkei 225 Stock Average rose 1.1% to a level of 16652.80. Meanwhile, the yen weakened to levels observed to 109.20 yen per dollar, while oil prices rose following statement of Goldman Sachs Group Inc that oil supplies begin to diminish as supply disruptions in Nigeria and increased demand.
Tetsuo Seshimo of Saison Asset Management Co. said oil prices and the weakening of the yen triggered the stability of the market in Japan. “During the Golden Week holidays, the yen is likely to continue soaring to 100 per dollar, but now back to 109 yen,” he said just as quoted by Bloomberg, on Tuesday (05/17/2016). Issuers exporters rose after the yen stable. Proodusen Komatsu Ltd rose 3.2%. Kikkoman Corp., a manufacturer of soy exports 40% of its products to North America rose 1.6%.
The energy sector posted a scintillating performance in today’s trading. Inpex Corp., the largest oil and gas company of Japan, rose 3.2%, while JGC Corp., which provides services to oil companies, also rose 3.2%.
Technically,
Resistance: 16650 16725 16810 High / Low: 16780/16505
Support: 16510 16460 16 350 Closed Price: 16 585
Comment: For intraday trade today suggest Buy at the level of 16500; stop and level targets reversal if break below 16450; and targets at the level of 16760 reversal 16300.
Corrected US inflation, Euro Trying Warpage
Uptrend in a row above the target of the Fed during the 2016 re-recorded in the survey. But amid optimism the results revealed data indicating the existence of a correction in the month of April. While in remote locations, Euro got the ball gag decline in US inflation is to try surging up.
The increase in prices that occurred in April yesterday was still driven by the residential sector. Although there are also other sectors such as healthcare and transportation sectors that support. If traced over the past year housing sector calculations even exceeds the average of the overall inflation rate is 3.2 percent a year.
Encouraging results outside the field of energy and food it is still not all uniform. There are still considerable in many sectors corrected to increase the weight of the load wheel rate of inflation. Sector household supplies, either new or used automotive and clothing among others, contributed to the negative in the situation.
Compared to the conditions of this past year, inflation has moved above estimates many audiences by noting increased yield as much as 1.1 percent. Though many original parties estimate will only grow about 1 percent. With so until April last overall inflation has risen to the level of 2.1 percent. This figure is located below analysts’ expectations of hope will penetrate to the level of 2.2 percent.
Technically,
Resistance: 1.1350 1.1400 1.1440 High / Low: 1.1347 / 1.1300
Support: 1.1300 1.1250 1.1200 Running Price: 1.1311
Comment: For intraday trade today suggest Buy at the level of 1.1265; stop loss at the level of 1.1230; targets at the level of 1.1363.
US Economy Recovers, Gold Prices Stand at the Green Line
The price of gold is still observed to rise amid an economic recovery that occurred in the United States, in other places it shines greenback to stand on the green zone.
Ongoing trading in the European session, gold futures June contract has risen 0.03%, at $ 1.274.60 per troy ounce on the Comex division of the US. The movement of the price of gold has hit a low of $ 1.270.00 and high level at $ 1.282.35 per troy ounce. In other metals trading on the Comex silver futures contract in July rose 0.15% The monitored at the level of $ 17,170 per troy ounce where it has moved touched a low of $ 17,080 and a high of $ 17,300 level.
Commodity price movement of metals is still visible persist for trying to rise despite the economic recovery in the US territory.
The growth of inflation in the US showed a steady increase, which the official report released by the Bureau of Labor Statistics states that the growth of US consumer inflation rose by 0.4% in April after rising 0.1% in March.
Technically,
Resistance: 1282.50 1284.80 1286.20 High / Low: 1282.00 / 1268.70
Support: 1277.00 1274.40 1272.10 Running Price: 1280.60
Comment: For intraday trade today suggest Sell at the level of 1283.10; stop loss at the level of 1285.60; the target at the level of 1273.10.
