Nikkei Relieved With the European Banking Stress Test
Nikkei up after the results of stress tests euro-zone banks made investors relieved by the condition of the financial system in the region. ECB reported 25 of the 130 leading banks in the euro zone have failed the health check which is a total of $ 31.7 billion funding shortfall. However, 12 of the 25 banks that have put together the funding of 15 billion euros this year. Overall, the results of stress tests showed no major bank in Europe that lacks the ability to be the face of volatile economic conditions.
Nevertheless, it might seem, investor reluctant to push up the index is too high ahead of the FOMC meeting on Thursday morning. The Federal Reserve is expected to end the bond-buying program and will probably give the signal a readiness to raise interest rates in mid 2014. Investors are also a bit careful look at the results of victory in the election of President Dilma Rousseff President of Brazil and the victory of pro-European party in the parliamentary elections of Ukraine.
On the domestic front, the stock Panasonic will get attention after the Japanese technology company, said it would sell its TV business unit, Sanyo Television. The unit is one of the leading suppliers of TV for the US retailer Wal-Mart. Sony plans to sell Sanyo Television to Funai Electric of Japan and will receive annual royalty payments. Nikkei futures gained 0.36% and is now trading at 15 385.
Technically, the index in the trading session today, Monday (27/10) likely to weaken, test negative trends, the impact of Wall Street. On the bearish engulfing formation M15 chart gives an opportunity for the index to move downside. However, the volume is likely to increase, an early indication of a bullish index. In addition, RSI, on the M15 chart, is in the oversold area, cue upside.
It is estimated, the index test in advance the level of Support 15320 and 15280. If it fails at 15 375, then the next index is expected to tend to retest the resistance level of 15400 and continued to be in the area of 15 450 possibilities.
According Estimates UK GDP, Sterling appreciated
Sterling rebounded against the US dollar after the release of UK GDP which according to estimates, and still showing a healthy expansion rate, which eased concerns will hamper economic activity by a slowdown in Europe.
Preliminary data released Friday showed the UK economy grew 0.7% in the 3rd quarter, down from 0.9% in the previous quarter. The figure was slightly eroded annual growth to 3.0%, but still be the fastest in the developed countries.
“With the decline in inflation that pushed for real income, employment sector and continued strong investment interest, as well as improving the health of the balance of the private sector, making the rate of recovery would not be stopped suddenly,” said Samuel Tombs, UK economist at Capital Economics senior.
Technically, today’s trading session on Monday (27/10), pound sterling-dollar pair has an opportunity to move in a positive trend.
The strengthening of the pound sterling primarily expected soon reexamine the minimum resistance at 1.6150 and 1.6200 maximum. Meanwhile, if the pound sterling was unable to break and stays below 1.6100 then another alternative scenario that is likely to test support the pound sterling in the area 1.6070 and 1.6020.
Gold Slightly Decreased in Early Monday Trading
At the beginning of the metal commodity exchange trading on Monday morning, natural gold a slight decrease when the banking sector was hit by the euro zone crisis period after the release of euro zone economic data show improvement.
In trading on the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded down 0.06% at $ 1,230.20 per troy ounce, after settling in last week at $ 1,231.80 per troy ounce.
Last week, gold futures rose slightly last week, but still posted a loss seacara ditangah weekly ongoing expectations for a rate hike in the US and the dollar gained more and push as a safe haven.
The dollar index which tracks the performance of the greenback against a basket of major currencies, ended up 0.55% at 85.79 levels.
A stronger US dollar compared to the usual gold, as it dampens the metal’s appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Meanwhile, on the other trades on the Comex, silver futures for December delivery traded down 0.07% to $ 17.185 per troy ounce, Copper futures for December delivery rose 0.07% to $ 3.041 per pound.
Technically, gold trading session today, Monday (27/10) reversal potential, test positive trend, but prone to taking profit. The RSI indicator is likely to re-test resistance bullish channel and into the area, but the Bollinger Bands which began to shrink, thus giving impetus to gold to the downside.
It is estimated that the price of gold immediately prior to test resistance at least in the area of 1235.00 and re-test the maximum level of 1240.50. However, if the price of gold could not break and stays below 1230.10 then estimated the price of gold has the potential to test the 1227.10 and 1225.90 Support.
