The Dow Jones (13564.64, +0.09%) ended flat and will be looking out for the Housing starts and the Existing home sales which are expected to be 0.770 Million and 4.58 Million respectively. While the index is above 13350-250 we can expect a rally towards 14000.
Nikkei (9145.81, +0.24%) is flat to positive and can rise towards 9300 in the coming days, on the broader picture it looks to be trading in the channel on the daily charts. Dollar-Yen is also in the 78-79 range on the broader picture.
Shanghai (2060.55, +0.05%) is flat and has support in the 2050-40 region which if broken can take it lower towards 2000.
Nifty (5600.05, -0.18%) had a flat to negative session with action seen in the individual stocks, only a strong move above 5650 can take the index higher towards 5900. Today markets are closed on the account of “Ganesh Chaturthi” holiday.
Dax (7347.69, -0.76%) retreated below its important level of 7400, it is in an uptrend but while below 7400 it can retreat towards 7000 levels.
Nymex Crude (95.53, +0.25%) is back in its 93.50-97.50 range a break can still be expected on the upside.
Brent (111.93, -0.09%) has come down from 116-17 level in the past two days and now stands at the support of 112-111.50 which if broken can take it lower towards 105.
Gold (1766.50, -0.12%) is flat with no significant move in either direction. Chances of it going down to take support at 1735-25 in the near term, but a break above 1775 can take it higher immediately.
Silver (34.55, -0.46%) is moving towards 36.00 which is its channel resistance on the weekly charts, currently is trading in the 35-33.80 range from the past four days.
Copper (3.78, +0.04%) having moved from 3.40 is now trading flat but can move towards 4.00 in the coming days.
Market remains stable. Following the ECB and the Fed, the BOJ will be in focus today for any announcement of further monetary easing. The Dollar-Index (79.19) has risen just above its Resistance at 79.10 and if it can sustain above 79.10, then a further rise to 80 is possible in the coming days.
The Euro (1.3043) has dipped below 1.3100 and can fall further to 1.3000 and even lower while below 1.3100. Dollar-Yen (78.62) is stable in between 78.50 and 78.85 ahead of the BOJ Meeting today. The Euro-Yen Cross (102.55) is looking mixed and ranged between 102.50-103.00 within its overall uptrend. A strong break below 102.50 can take it down towards the 200-DMA Support which is currently at 101.76.
Dollar-Swiss (0.9281) is flat in between 0.9250-300 and remains weak for a test of 0.9200. The Pound (1.6241) is continuing to trade above 1.6200 but needs to see a strong break above 1.6300 to move up further higher. Failure to rise past 1.6300 can take it down to 1.6150 and may be even lower. Aussie (1.0427) remains weak an dcan fall to 1.0380-30 today.
In Asia, the USD-SGD (1.2251) is moving up over the last couple of days but has strong Resistance in 1.2300-20 region which can keep it pressured on the downside for a fall to 1.2000. Dollar-Rupee had closed flat yesterday at 54.01/02 and can be ranged between 53.50-54.50 for some time. The Indian markets are closed today on account of the Ganesh Chaturthi holiday.
The Spain-Germany 10-Yr Spread (4.25%) is bouncing well from its Support at 4.0% and has good chances of seeing 4.60-65% at least. This could pull the Euro down further towards 1.30.
The US 10-Yr (1.80%) remains at/ above 1.80% for now, but could start coming down soon, especially if the Spain-Germany 10-Yr Spread moves up. Remember, US yields are still in an overall downtrend and a fall below 1.70% will only reinforce that. For the US yields to break their downtrend, we'd need to see a rise past 1.85% at least, preferably past 1.90%.
The Bank of Japan meeting gets over today. The market is waiting/ hoping for a QE from Japan as well. Japanese GDP (YoY has climbed to near 3.4% over the last several monhts and the Tankan has been relatively strong. Unemployment is down to 4.3% but could be in danger of moving up again. Take a look at
Although the recent data from Japan has been relatively good, the BOJ might want to ensure the gains can be sustained.
2:37 GMT or 8:07 IST BOJ Meeting
8:30 GMT or 14:00 IST UK BOE Minutes
...Expected 0-0-9 ...Previous 0-0-9
12:30 GMT or 18:00 IST Aug US Housing Starts
...Expected 0.770 Mln ...Previous 0.746 Mln
14:00 GMT or 19:30 IST Aug US Existing Home Sales
...Expected 4.58 Mln ...Previous 4.47 Mln
Aug UK CPI Y/Y
...Actual 2.5% ...Previous 2.6%
US Current Account Balance
...Actual $-117.4Bln ...Previous $ -133.6 Bln
July US TICS (Net foreign purch of long-term Sec)
...Actual $67.0 Bln...Previous $ 9.3 Bln