Tuesday, May 1, 2012

Market Overview 2nd May 2012

Wednesday, 2nd May 2012. The stock index manage to closed firmer ahead of the labour day holiday while most of the major were closed due to public holiday as well.

"- U.S. stocks advanced Tuesday, propelling the Dow Jones Industrial Average to its highest close since late 2007, after a report indicated U.S. manufacturing expanded in April, offsetting concern about the economic recovery. After climbing as much as 125 points, the Dow industrials DJIA +0.50%   finished at 13,279.32, up 65.69 points, or 0.5%. The finish marked its highest close since December 2007.

The S&P 500 SPX +0.57%   climbed 7.91 points, or 0.6%, to 1,405.82, with energy the strongest performer of its 10 industry sectors. The Nasdaq Composite COMP +0.13%  rose 4.08 points, or 0.1%, to 3,050.44."
"- Japanese stocks fell Tuesday as the yen strengthened and some disappointing earnings reports weighed, while shares in Sydney jumped after a bigger-than-expected interest rate cut from the Reserve Bank of Australia. Japan’s Nikkei Stock Average JP:100000018 -1.78%  closed 1.8% lower at 9,350.95, while the Australian S&P/ASX 200 index AU:XJO +0.75% rose 0.8% to 4,429.50. Earlier, gains for Australian stocks gathered steam after official Chinese manufacturing data showed further improvement for the sector. Still, market reaction to the Chinese data appeared muted, with Chinese markets, along with those in Malaysia, the Philippines, South Korea, Taiwan and Thailand, closed for a public holiday."

"- Crude-oil inventories rose 2.04 million barrels on the week ended April 27, a trade group said late Tuesday. The American Petroleum Institute also reported that gasoline stockpiles declined 3.9 million barrels, and inventories of distillates were down 4.2 million barrels on the week. Oil rallied Tuesday, with the June contract CLM2 -0.27% settling at a five-week high of $106.16 a barrel after positive U.S. manufacturing data. "

"-Soybean futures finished widely mixed amid bull spread unwinding. The May and July contracts ended 5 1/4 and 2 cents lower, respectively, while the August contract was 3 cents higher and new-crop contracts were 7 3/4 to 11 3/4 cents higher. Meal futures also finished widely mixed amid bull spread unwinding, while soyoil closed lower. Old-crop soybean futures faced light profit-taking pressure today after the recent string of gains. "

FKLI- Some Hope For Recovery ? 

Investors remain cautious even though China officials announced that the economy growth is in checked by manufacturing data showed recently. The FBM KLCI ended slightly higher to 1,570.61 level while the April contract settled at 1,573.50. The new spot month for May contract finished 1.50 points lower to 1,565.50, it went down to 1,555 on morning session. To recap, the market have dipped about 40 points from previous  peak at 1,605 level and there is still no telling where is the bottom of this correction might end. The only clue we can use will be using the recovery signs judging by higher lows and higher highs formation starting on hourly chart then for more promising signal, daily chart will provide a better choice. Up until now, the overall outlook for stock index recovery is still gloomy even though there will be series of first quarter local companies earning results announcement coming up. For today, support is located around 1,556 while resistance is pegged at 1,581.

Daily Pivot Point
R2= 1581
R1= 1573
S1= 1556

FCPO- Weakness Across Broad Based Commodities Spark Late Selling

The benchmark July ended RM34 lower to 3,471 as market lack of fresh positive news and weak Soya oil price outlook might have spur the late sell-off as well. Finishing just RM7 above the low of previous Monday session, market is susceptible to weaken further if there is negative performance on Soya oil prices. On Tuesday the actively traded Soya oil futures dipped 0.37 cents to 54.65 cents per pound, marking another weak day for commodities market. Palm oil futures is likely open gap down today if there is no overnight recovery from Soya oil futures. Technically, after testing at the high of the range for a few sessions, the benchmark July had to went down as it fail to breach above horizontal resistance trend line shown above. Palm oil price outlook is likely to deteriorate further judging on Soya bean and Soya oil futures. Hence, the horizontal support trend line shown above is susceptible to break soon and it could worse if more Long holders cover their positions today.  For today, support is likely  located around 3,439 while resistance is pegged at 3,496.

Daily Pivot Point
R2= 3521
R1= 3496
S1= 3455
 Disclaimer: 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.


Post a Comment