Mid Session Market Update
Major Asian Markets Lose Ground Overnight
Asia’s major markets were in negative trend today as investor sentiment in the region remains negative because of lower oil prices and also China concerns weighed.
In Japan, where markets resumed trading today after a day off Monday, the Nikkei 225 finished 479 points, or 2.71 percent, lower at 17,218.96, with the mining sector down 5.55 percent and the oil and coal sector falling 5.21 percent. In South Korea, the Kospi closed down 3.98 points, or 0.21 percent, at 1,890.86.
Chinese markets wavered between positive and negative territory, a day after taking a sharp fall.
The Shanghai composite ended up by 6.48 points, or 0.21 percent, at 3,023.18 after increasing as much as 0.9 percent and decreasing as much as 0.71 percent in the first 10 minutes of trade. On Monday at late-afternoon sell-off the index declined more than 5 percent.
The smaller Shenzhen composite finished up 0.39 percent after earlier declining as much as 1.45 percent. The CSI 300 tacked gains of 0.74 percent. Away from the mainland, Hong Kong’s Hang Seng index erased gains to slip 0.65 percent.
SGX Investigating Quarterly Financial Report Rule
Singapore Exchange Limited is reviewing a 13-year-old rule requiring listed companies to provide quarterly financial reports in light of moves by other regulatory authorities including the U.K. to drop the practice. Companies with a market value of at least S$75 million ($52 million) are required to provide quarterly financial reports.
Ron Sim, founder and chief executive officer of Osim International Ltd., Asia’s largest maker of massage chairs, welcomed the SGX review.
European Indices Gaining Points
UK100 is in positive trend today though monthly industrial production report published today was not good . According to the report Manufacturing output decreased by 0.4% in November 2015 compared with October 2015. The largest contribution to the decrease came from the manufacture of basic pharmaceutical products & pharmaceutical preparations, which decreased by 4.9%. Right now UK100 price is above SMA 50 in m30 timeframe and has broken the resistance 5940. We are neutral in UK100 as in higher timeframe price is still much below of SMA 50 and SMA 200
EURUSD Midday Analysis
EURUSD is now in a ranging market . Earlier today it rose up to 1.0899 but failed to break the resistance zone . Now it has fallen to the recent support zone again . So EURSUD is wavering within a range . So we have neutral bias in EURUSD right now.
XAU/USD Midday Analysis
XAU/USD is in negative trend today. It has formed descending channel in M30 timeframe and now it is at the confluence zone of bottom of down channel and support zone. There is no selling opportunity as higher timeframe H4 is still in bullish territory.
US Session Crude Oil Analysis
Crude Oil fell 100 points today after opening and found bottom at 30.39 from where it bounced up sharply to 32.11. Now it is testing the resistance zone 32.00-32.10. If it breaks that zone it may go further higher today.
Again trading data showed that managed short positions in WTI crude contracts, which would profit from a further fall in prices, are at a record high, implying that many traders expect further falls. Analysts also adjusted to the early price rout in the year, with Barclays, Macquarie, Bank of America Merrill Lynch, Standard Chartered and Societe Generale all cut their 2016 oil price forecasts on Monday. “A marked deterioration in oil market fundamentals in early 2016 has persuaded us to make some large downward adjustments to our oil price forecasts for 2016,” Barclays bank said. “We now expect Brent and WTI to both average USD 37/barrel in 2016, down from our previous forecasts of USD 60 and USD 56, respectively,” it added. But it was Standard Chartered that took the most bearish view, stating that prices could drop as low as USD 10 a barrel.
According to our analysis if Crude Oil breaks out above 34.30 it may go more higher in coming days . On the other side if it breaks down below 30.30 then it is expected to fall below 25.50. Right now we are in neutral bias in Crude Oil.