Monday, April 9, 2012

Market Overview 10th April 2012

 Tuesday, 10th April 2012. Stock index slipped on U.S market performance which dropped due to disappointed job data. Other news to follow.

"- U.S. stock indexes fell about 1% Monday as investors reacted to the government's March jobs report, released Friday when stock markets were closed, which showed less growth than analysts expected. The Dow Jones Industrial Average DJIA -1.00% fell 130.55 points, or 1%, to 12,929.59. The S&P 500 SPX -1.14% lost 15.88 points, or 1.1%, to 1,382.2. The Nasdaq Composite COMP -1.08% lost 33.42 points, or 1.1%, to 3,047.08. Trading was light; European financial markets were closed for the Easter holiday."

"- Asian markets ended solidly lower on Monday after China’s inflation accelerated in March and a weak American employment report dragged on U.S. equity futures, with Japanese stocks also hit as a strengthened yen pressured exporters. Japan’s Nikkei Stock Average JP:100000018 -1.47%  fell 1.5% to 9,546.26, ending lower for a fifth straight trading day. China’s Shanghai Composite CN:000001 -0.90%  gave up 0.9% to 2,285.78, South Korea’s Kospi KR:0100 -1.57%  lost 1.6% to 1,997.08 and Taiwan’s Taiex XX:Y9999 -1.37% dropped 1.4% to 7,600.87. Stock markets in Hong Kong, Australia, New Zealand, Thailand and Philippines were closed for public holidays."

"-Crude-oil futures ended at a seven-week low Monday, hit by a disappointing report on U.S. employment late last week and ahead of international talks over Iran’s nuclear program.
Crude-oil futures for May delivery CLK2 -0.11%  fell 85 cents, or 0.8%, to $102.46 a barrel on the New York Mercantile Exchange. That was the lowest settlement for a most-active contract since mid February, and the third down session in the past four."

"-May Soybeans finished down 3 at 1431, 15 3/4 off the high and 7 1/2 up from the low. May Soybean Oil finished up 0.07 at 56.71, 0.47 off the high and 0.23 up from the low. After making a minor new high for the move early today, the May soybean market fell back in what many suggested was a profit taking or position balancing reaction ahead of the coming USDA report. The November soybeans forged an even wider range today, suggesting that the difference in opinion between old and new crop soybean markets remains rather significant. US soybean export inspections were seen at 26.39 million bushels from 29.5 million last week and that compares to estimates of 24 to 28 million. "

 FKLI- Headed Lower

 Stock index and index futures retraced yesterday amid recent weakness on regional and U.S market. Market sentiment was hammered by the performance of U.S futures that went down due to weaker-than-expected jobs data, released on previous Friday. Equities are likely to reel from a disappointing U.S. jobs report. Today, investors will be back at their desks after the long Easter weekend faced with a busy calendar that includes important macroeconomic data in China and the start of the first-quarter earnings season in U.. Technically, the April contract has break below the support trend line and formed another lower high for the second time. If the market could not recover by today, we are going to see another weakness, more correction is poised to happen if the index futures could not sustain above 1,580 at the moment. Medium term trend is changing to Bearish based on the negative curve exponential moving average shown on hourly chart above. However, based on weekly pivot, second degree downside potential is limited around 1,570 for the moment. 

Daily Pivot Point
R2= 1594
R1= 1590
S1= 1582
S2= 1578

FCPO- Retraced On Profit Taking, Overall Upside Still Intact. 

Palm oil futures had a great run by surging in the morning session but most of the gain were erased when the market resume on afternoon session which might due to sudden retrace on CME Soya oil futures. The benchmark Jun went up to 3,623 at least 10-months high level and closed RM29 lower to the day low at 3,575 level. Profit taking activities were dominating when the market gap down on the afternoon opening bell. Technically, overall upside momentum remain intact as yesterday price action is deem as neutral instead of Bearish. It will still be a well supported market even though if the market would correct vigorously from here. Yesterday,  it approach the immediate support level (based on previous 4th April high) at around 3,572 level, the next major support level will be place around previous week low at 3,530 level. But if it turn out market would correct 75 points from here, the psychological support level will be located at 3,500. There was no upside cap for this uptrend yet.

Daily Pivot Point
R2= 3639
R1= 3607
S1= 3559
S2=3543Disclaimer: Information and opinions contained in this report are for educational purposes only. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness.

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