Delays Increase in Tax Return Support Japan Stock
Japanese shares opened trading Wednesday with a hefty increase, although slower than the rise that occurred Tuesday. Japanese stocks rose movement resumed after Prime Minister Shinzo Abe decided to postpone the policy increase the sales tax in the country.
Yesterday the Japanese stock market rose sharply and bring the Nikkei back to the top level of 17000 points. Abe announced that he would postpone the sales tax increase in Japan at least for the next 18 months.
Today the seed stocks appears to be still increasing. Toyota has increased by 18 yen to 7016 yen. Sony posted an increase of 17 yen to the position of 2495.5 yen. Softbank rose by 4 yen to 8020 yen positions. SMFG increased by 48 yen to 4467.5 yen.
This morning the Nikkei spot index seems to rise is still limited. Spot index opened by posting an increase of 43.78 points or 0:29 per cent and stood at 17387.84 points. The broader Topix index increased by 0:49 percent to 1401.63 points.
The Nikkei 225 futures this morning seems to have an opening at the position 17400. Nikkei index futures opened up significantly by 60 points compared to the previous closing.
Analyst estimates that the movement in the stock market index futures trade today will have gained limited movement. Prime Minister Shinzo Abe’s decision to postpone the tax increase has gained a significant boost in the stock market today. Today the Nikkei will test the support level at 17350-17270 points.
Meanwhile if you have a further increase in the Nikkei will meet resistance level at 17600 points. To trade Tuesday lows and highs that had achieved the Nikkei is 17185-17415 points.
Technically, the index on the trading session today, Wednesday (19/11) likely to weaken, test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume tends to rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 17330 and 17280. If it fails at 17 380, then the next index is expected to tend to retest the resistance level of 17400 and continued until the possibility of being in the 17450 area.
Strengthening Aid Sterling Inflation Data
Sterling traded slightly higher against the dollar in European trading session today after UK inflation rose more than expected in October. UK inflation previously feared would continue to decline after the Bank of England in its quarterly inflation report last week that inflation will fall below 1% in the coming months.
Office for National Statistics reported UK inflation (year-on-year) rose to 1.3% in October from the previous month by 1.2% and higher than economists’ estimates of 1.2%. Reported core inflation remained at 1.5%. UK inflation is under the Bank of England’s target of 2% since January. The low inflation has provided a space for the BOE to keep interest rates for longer.
GBPUSD traded at around 1.5661 at 18:15 pm, with daily highs and lows 1.5667 1.5630.
Technically, the trading session today, Wednesday (19/11), pound sterling-dollar pair a chance to move in the negative trend.
The weakening of the pound sterling primarily expected soon reexamine the minimum support at 1.5560 and 1.5500 maximum. Meanwhile, if the pound sterling was able to break and hold above 1.5614, then the other alternative scenario that Pound chance to test resistance in the area of 1.5650 and 1.5700.
Gold Rises As The Gold Reserves of Russia Increase
Gold futures rose to the highest level in two weeks to go beyond the level of $ 1.200 / onz after Russia increased its gold reserves, fueling speculation that a rebound in demand for gold bars, coins and jewelry will help curb the decline in prices this year.
Russia’s central bank governor, Elvora Nabiullina said that the bank bought 150 metric tons of gold this year. It was almost double that of the purchase in 2013 which amounted to 77 tons, in the show in the data at the International Monetary Fund. It was indicated that Russia has bought 35 tonnes since the end of last September. Gold prices fell by 3.3% last month, hitting a four-year low of $ 1,130.40 on November 7th.
In the midst of gold futures contracts that led to a decrease in the second year in a row for the first time in more than a decade, the physical metal buyers back popping. Based on estimates from the World Gold Council, the central bank may increase purchases by 22% in 2014. In the third quarter, global demand fell to its lowest level in nearly five years.
“The fact that Russia bought more gold than diversifying into other currencies or buy more dollars are positive for gold,” said Frank Lesh, a trader at FuturePath Trading LLC in Chicago.
Gold futures for December delivery rose 1.1% to close at $ 1,197.10 on the Comex in New York. Prices earlier reached the level of $ 1,204.10, it is the highest level since October 30.
Prices also rose today as the dollar weakened against major currencies series, which increases the demand for alternative assets.
Technically, gold in today’s trading session on Wednesday (19/11) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Bands that began to widen, thus giving impetus to the gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1188.10 and re-test the maximum level of 1183.00. However, if the price of gold is able to break and hold above 1193.20, the estimated price of gold could potentially test the 1195.90 and 1199.00 resistance.
