While Asian shares lost ground, European stocks advanced thanks to gains in commodity producers. Depressed by losses in Chinese equities, stocks in Asia fell with the MSCI Asia Pacific Index retreated 0.4 percent. The Shanghai Composite Index fell 1 percent to the lowest level since February while The Hang Seng Index slid 0.7 percent.
Australia’s S&P/ASX 200 Index and South Korea’s Kospi also found themselves in bearish territories, losing 0.7 percent and 0.5 percent, respectively.
By contrast, European shares rose, boosted by higher metals prices. The Stoxx Europe 600 Index reversed higher after the biggest one-day loss since November. The benchmark was led by materials companies, especially Glencore Plc, as zinc, aluminum and iron ore rose after sharp drops earlier in the week.
Oil futures prices edged higher after two days of declines in a row. Both crude benchmarks advanced on Wednesday after a weekly report showed a drop in U.S. inventories.
The American Petroleum Institute (API) on Tuesday said U.S. storages plunged by 840,000 barrels in the week to April 14 to 531.6 million barrels. Official U.S. oil data is expected to be published later on Wednesday by the Energy Information Administration (EIA).
Fig: AUDUSD H4 Technical Chart
AUDUSD’s price action has dropped below the long-term MA50, suggesting a strong downtrend after the pair reversed from a resistance at 23.6% Fibonacci level. As the RSI is heading downwards while ADX is edging higher, the down moves are expected to extend which may send the price to as low as a support at 0.74700.
Buy Digital Put Option from 0.75100 to 0.74700 valid until 21:00 GMT April 19, 2017
Fig: GBPNZD H4 Technical Chart
GBPNZD retreated after it hit the highest level since early August 2016. The currency pair soon rebounded from a support at 1.82000. Both RSI and ADX indices are soaring, signaling a strong uptrend that may bring the pair to as high as a resistance at 1.83500.
Buy Digital Call Option from 1.82900 to 1.83500 valid until 21:00 GMT April 19, 2017
Fig: EURCAD H4 Technical Chart
EURCAD has been tracing higher since it rebounded from a support at 50.0% Fibonacci level. The rally has sent the market into an overbought zone. As the result, it may be hard for the pair to break a resistance at 1.44800 even ADX is still soaring high.
Buy Digital Call Option from 1.44000 to 1.44800 valid until 21:00 GMT April 19, 2017
Fig: FTSE 100 H4 Technical Chart
FTSE 100 continued to trade lower following a short correction after the pair fell to the lowest level since early February. RSI also reversed higher, signaling an overwhelming bearish momentum in the market. The stock benchmark is expected to fall as low as 7090.00.
Buy Digital Put Option from 7130.00 to 7090.00 valid until 21:00 GMT April 19, 2017
Weighed Down By Declining Quarterly Revenue And Earnings, IBM Shares Tumble
Shares of International Business Machines Corp. (IBM Corp.) plunged sharply by more than 5 percent in after-hour U.S. trading on Tuesday after the company reported declines in revenue and earnings on a yearly basis.
The software company said in the first quarter of 2017, it earned a net income of $1.75 billion, or $1.85 a share, which was below a figure of $2 billion, or $2.09 a share, in the year-earlier period. Excluding one-time items, IBM said earnings came in at $2.38 a share, roughly above consensus estimate of $2.35.
Regarding the company’s revenue for the three-month period, data showed a decline to $18.16 billion from $18.7 billion last year regardless of a 60% improvement in its software-as-a-service business. The result missed a Wall Street’s estimate of $18.4 billion.
As for its fiscal 2017 outlook, IBM maintained its forecast for earnings of at least $13.80 a share. This was slightly above analysts’ expectations calling for full-year earnings of $13.77 a share.
Buy Digital Put Option from 161.00 to 159.00 valid until 21:00 GMT April 19, 2017
European shares edged higher on Thursday after having fluctuated in early trade while Asian shares closed higher. On the back of a weak Japanese Yen and better-than-forecast trade figures, Japan’s Topix index scored its first weekly gain in more than a month. Stocks in Hong Kong, Australia and South Korea all advanced. The Hang Seng rose by 0.7 percent, Australia’s S&P/ASX 200 Index jumped 0.3 percent while South Korea’s Kospi index climbed 0.5 percent.
French stocks soared on Thursday with gains in equities of Publicis Groupe SA and Pernod Ricard SA overwhelming concerns over risks associated with this weekend’ presidential election vote.
Crude oil rebounded, rising by more than 0.6 percent following a slump of 3.8 percent Wednesday as the EIA reported U.S. gasoline supplies increased for the first time since February while U.S. crude oil production surged to 9.25 million barrels per day (bpd), up almost 10 percent since mid-2016.
According to data released by the Ministry of Finance, Japanese exports grew at the fastest rate in more than two years in March. Japan’s exports were reported to take off by 12 percent from a year earlier while imports jumped 15.8 percent. That left the trade balance for March surplus at 614.7 billion yen ($5.64 billion), higher than economists’ estimate of 608 billion yen.
Elsewhere, New Zealand consumer price inflation (CPI) was said to jump steeply in the March quarter, reaching its central bank’s target for the first time in more than five years. The country’s CPI surged by a hefty 1% in seasonally adjusted terms, above forecast calling for a rise of 0.8%. The figure marked the largest quarterly gain since the June quarter of 2011.
EURNZD has broken out of a downtrend which was retrained by a slopping downward trend line connecting lower highs. The pair looked set to comfortably break a resistance at 1.53400 as the short-term MA20 has penetrated the long-term MA50 from below, suggesting a strong uptrend. Both RSI and ADX indices are edging higher, signaling further advances.
Buy Digital Call Option from 1.53600 to 1.54100 valid until 21:00 GMT April 20, 2017
EURUSD has breached a resistance at 1.07100 after a period of moving sideways below this level. The pair is likely to surge higher in an attempt to reach another firm resistance at 1.08150 with support from two MAs moving below the price action.
Buy Digital Call Option from 1.07750 to 1.08150 valid until 21:00 GMT April 20, 2017
FTSE 100 index continued to trade lower after having moved sideways on Wednesday. The pair gained in early trade as buyers jumped in to take advantages of a market falling in the oversold zone. However, bullish momentum seemed weak and the index may drop below a support at 7090.00 to test a support at 7050.00.
Buy Digital Put Option from 7090.00 to 7050.00 valid until 21:00 GMT April 20, 2017
France’s stock benchmark soared high on Thursday, sending its price action past both short-term and long-term MAs, signaling a reversal into an uptrend. The pair is struggling around a resistance at 5055.00 and is expected to edge higher to test a level at 5085.00
Buy Digital Call Option from 5055.00 to 5085.00 valid until 21:00 GMT April 20, 2017
American Express Shares Advance As Earnings And Sales Fall Less Than Expected
Share of American Express Co’s jumped 2.5 percent after the bell on Wednesday as the credit-card company reported first-quarter earnings and sales above analyst expectations.
American Express posted a first-quarter net income of $1.2 billion, or $1.34 a share. This was a decline compared with $1.4 billion, or $1.45 a share, in the year-ago quarter but was still beat market’s forecast for earnings of $1.28 per share.
Sales were also down from a year ago but fell less than expected. The company reported sales dropped 2 percent to $7.9 billion in the first quarter of 2017 from $8.1 billion a year earlier. Economists had expected sales to plunge to $7.7 billion.
Buy Digital Call Option from 77.30 to 78.00 valid until 21:00 GMT April 19, 2017
Asian shares were mostly higher on Friday thanks to positive sentiment from U.S. equities overnight which were boosted by optimism over a U.S. tax overhaul. The MSCI Asia Pacific Index looked set to put an end to a four-week string of declines, rising by 0.7 percent on Friday, contributing to a rise of 0.4 percent for the week. Australia’s S&P/ASX 200 Index and South Korea’s Kospi index jumped more than 0.6 percent each.
Also heading for its first weekly gain in more than a month, Japan’s Topix index rose 1.1 percent, spurred higher by a weak yen. The Japanese Yen weakened after Bank of Japan Governor Haruhiko Kuroda on Friday said the central bank will maintain a very accommodative monetary policy and the current pace of asset purchases for some time as the inflation rate is still quite sluggish.
Hong Kong’s Hang Seng edged 0.2 percent higher while The Shanghai Composite dropped 0.3 percent, extending its worst weekly decline of the year.
Crude prices continued to move sideways on Friday after fluctuating in the previous session as investors were kept on the sidelines amidst tussle between concerns over swelling U.S. production and optimism over comments from some OPEC members stating that an extension to OPEC-led supply cuts was likely.
According to Office for National Statistics, U.K. retail sales fall sharply in March, tumbling by 1.8% month-over-month. This was much higher than market forecast calling for a 0.3% decline.
Fig: EURNZD H1 Technical Chart
EURNZD has broken below both the short-term MA20 and the long-term MA50, suggesting a reversal into a downtrend. The downbeat moves have sent the market into a bearish zone, as indicated by RSI index which has move past the 50 line. A support at 1.52100 is within the sight.
Buy Digital Put Option from 1.52700 to 1.52100 valid until 21:00 GMT April 21, 2017
Fig: EURCAD H1 Technical Chart
EURCAD has escaped from a period of moving sideways around the long-term MA50 level. The pair fell below this dynamic support and is heading lower towards a support at 1.43500. While RSI is pointing down, ADX index is edging higher, suggesting further declines.
Buy Digital Put Option from 1.44000 to 1.43500 valid until 21:00 GMT April 21, 2017
Fig: DAX 30 H4 Technical Chart
Germany’s DAX 30 index failed to fight the pressure from the short-term MA20. The bear continued to dominate in the market, as indicated by RSI index which has been immersed in the bearish zone. The index is expected to extend the down moves and may fall as low as 11930.00.
Buy Digital Put Option from 12010.00 to 11930.00 valid until 21:00 GMT April 21, 2017
Fig: EURO 50 Index H4 Technical Chart
Euro 50 index reversed lower after having failed to hit a resistance at 3450.00. The stock benchmark has also been under pressure exerted by two MAs hanging above the price action. As RSI is heading downwards to the oversold zone, the price is expected to fall further to as low as 3400.00.
Buy Digital Put Option from 3420.00 to 3400.00 valid until 21:00 GMT April 21, 2017