The Nikkei Weakens Amid Reports Earnings And Bankruptcy Skymark
Japanese stocks opened lower on Thursday, as the market is struggling with some disappointing earnings results, the strong yen and a surprising bankruptcy of Skymark Airlines Inc.
On the movement in the beginning of the session, the Nikkei Average fell about 0.7%, erasing gains in the previous day by 0.2%.
Shares of Nintendo Co. fell by 6.2% after the company posted a rise in net profit but also memamngkas earnings outlook of the company, while Canon Inc. fell 4.7% as analysts and newspapers said that the increase in net interest income which amounted to 6% in the quarter keepat more influenced by the weakening yen. Shares in Komatsu Ltd. fell by 7.4% despite its quarterly earnings rise 5.5% print, as CEO of the company said that sales in China will continue to weaken, according to a report from Bloomberg News.
In addition to earnings reports, which affect the decline in the Tokyo stock market is volatile movements yen with the US dollar fell to 117.70 yen on Wednesday that at the level of 118.05.
But perhaps the greatest affect on the stock exchange today is the news of bankruptcy of Skymark Airlines.
Technically, the index on the trading session today, Thursday (01/29) is likely to strengthen, test positive trend. At the M15 chart bullish hammer formation provides opportunities for the index to move upside. However, the volume of which is likely to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first resistance level of 17 830 and 17 770 12890. If you fail, then the next index is expected to tend to retest the support level that is 17 750 and continued until the possibility of being in the 17700 area.
Euro Weakens Against US Dollar, Markets Wait for the FOMC
The movement of foreign exchange on Wednesday, the euro was observed to weaken against the US dollar after the release of European economic reports, as the market awaits the FOMC statement early har.
Course of trade in the US session, the EURUSD fell 0:58% at 1.1313 level where the pair is seen moving touched a session low 1.1224 to 1.1422 level daily and daily highs for the session.
Euro looks depressed against the US dollar, despite consumer confidence in the region of Germany has risen and has not been able to fully contribute to the strengthening of the euro naturally.
Based on the official report released by GfK has stated that consumer confidence in the German region naturally rise, seasonally adjusted to 9.3 in February. While other separate report released by Destatis has stated that the price of imported goods in the territory of Germany experienced a decline of 1.7% in December.
The attention of market participants today awaiting the results of the latest statement from the Fed, amid speculation that the impending rise in interest rates in the US. In the previous session the euro looks naturally strong rally due to weak market conditions in the US manufacturing.
A statement of policy by the Fed’s meeting this morning will provide for the movement of the euro, which the survey of economists had forecast that the Fed will continue to keep interest rates at 0.25%.
Meanwhile, if the statement made by the Fed tonight is “hawkish” the natural movement of the euro will decline and the US dollar is beneficial for the natural reinforcement. But on the contrary, if the Fed statement is “dovish” then it will bring back the euro to rise naturally.
Technically, the trading session today, Thursday (1/29), the Euro-dollar pair a chance to move in the negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.1235 and 1.1170 maximum. Meanwhile, if the Euro is able to break and hold above 1.1288, then the other alternative scenario that Euro chance to test resistance in 1.1325 and 1.1375 area.
The Fed Express US Economy Solid Gold Weakens
Gold fell on Wednesday after the US central bank emphasizes a commitment to raise interest rates this year. The Fed again showed optimism about the US economy, underlines the solid growth and rapid job creation. Although inflation declined but officials are confident the central bank’s inflation target of 2% will be achieved in the medium term and the Fed remains “patient” to tighten monetary policy.
The Fed said low interest rates are still appropriate to prop up the US economic expansion, but still opportunities hike interest rates sooner than it should. If the labor market and inflation showed faster-than-expected increase in the level of interest rates is likely to be raised, but on the contrary if the labor market and inflation in the coming months is lower than expectations the Fed, the lower the interest rate will be retained longer.
With the readiness of the Fed to raise interest rates this year, a survey by Reuters showed that gold is expected to record a three-year streak in 2015. Gold in trading Wednesday to close at $ 1,285.55 per troy ounce, with daily highs $ 1,293.60 and lowest $ 1,280.08.
Technically, gold in today’s trading session on Thursday (01/29) 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 1275.33 and re-test the maximum level of 1270.73. However, if the price of gold is able to break and hold above 1279.50, the estimated price of gold could potentially test the 1280.40 and 1282.72 resistance.
