Shanghai: SSE Composite index (.SSEC) posts higher market shares, locking quarrel drives Tokyo down
Shares were mostly higher in Asia on Thursday, although Japan’s benchmark dropped as local leaders argued with Prime Minister Shinzo Abe’s government over measures to contain the coronavirus epidemic.
After a 3.4% nocturnal rally on Wall Street, markets advanced in Hong Kong, Sydney and Shanghai. Investors seem reassured by signs that deaths and infections are approaching a peak or plateau in some of the most affected regions of the world.
And a meeting of oil producers scheduled for Thursday raised hopes that energy companies could get some relief in the form of production cuts to help support crude prices amid slumping demand.
The Nikkei 225 index for Japan fell 0.3% to 19,298.64 after the central bank governor said the economy was facing “extremely high” uncertainty regarding the likely impact of the pandemic.
This uncertainty has been exacerbated by disagreement among leaders over the speed and extent of the extension of precautions intended to contain an increase in coronavirus infections.
Abe spokesman said after declaring a state of emergency for Tokyo and six other hard-hit areas on Tuesday, the government had planned to see if residents complied with the fully voluntary request to stay at home before deciding whether or not to ask other companies. to close.
This ran counter to efforts by Tokyo governor Yuriko Koike to achieve more stringent compliance, as so far, requests appeared to have only reached about half of the 70-80% social distancing that Abe said to aim.
The governor of Aichi, a prefecture not listed in Abe’s declaration of emergency and which houses the headquarters of Toyota Motor Corp., has requested that it also be included. The region reported dozens of police officers who fell ill with the coronavirus.
Equities also fell in Taiwan, Malaysia and Indonesia.
But elsewhere in Asia, markets were generally higher. The Hong Kong Hang Seng rose 0.5% to 24,100.09 and the Shanghai composite index gained 0.5% to 2,829.30. In Australia, the S & P / ASX 200 increased 2.4% to 5,331.10 and the South Korean Kospi increased 1% to 1,825.22. The Indian Sensex jumped 2.1% to 30,526.79.
Futures for the S&P 500 and Dow industrials edged up.
Recent upward market swings have overshadowed the declines as deaths and infections may approach a peak or plateau in some of the most affected regions of the world.
This has led some investors to start looking at the other side of the economic downturn that is hitting the world as authorities try to slow the spread of the coronavirus. The S&P 500 has jumped almost 23% in the past two and a half weeks, building on previous gains driven by massive amounts of aid pledged by governments and central banks for the economy and the markets.
“Risk assets have continued to rally around the perception that the global economy will reopen faster than expected,” said Stephen Innes of AxiCorp in a comment.
The prospect of progress in talks between oil producers was a big driver of the rally on Wednesday, analysts said.
Oil prices have been even more volatile than stocks recently, with Russia and Saudi Arabia fighting over production levels as demand wanes. Oil producers are expected to meet on Thursday and an announcement of production cuts to support crude prices is possible.
“The icing on the cake, … a” good “result for oil prices from the OPEC + meeting, would be a global agreement to reduce production … beyond OPEC and Russia, although concerns about demand persist, “said Innes.
US benchmark crude oil rose 82 cents to $ 25.92 a barrel in electronic commerce on the New York Mercantile Exchange Thursday morning. It gained $ 1.46, or 6.2%, to settle at $ 25.09 per barrel on Wednesday, recovering part of its 9.4% drop from the previous day.
Brent crude oil, the international standard, rose 62 cents to $ 33.46 a barrel. It gained 97 cents, or 3%, at $ 32.84 a barrel in London.
In currency trading, the dollar recovered 108.91 Japanese yen against 108.84 yen on Wednesday. The euro sold at $ 1.0858, little change from $ 1.0856.
Many analysts say they are skeptical about the recent rally in stocks given the uncertainty that remains. The death toll continues to rise, millions of people lose their jobs every week and the economic suffering is global.
But Dr. Anthony Fauci, America’s foremost infectious disease expert, raised hopes when he said the White House was working on plans to ultimately reopen the country. President Donald Trump said later that “it will be sooner than later”.
The S&P 500 climbed 3.4% to 2,749.98. The Dow Jones Industrial Average also increased 3.4% to 23,433.57. The Nasdaq added 2.6% to 8,090.90.
The most battered stocks since the sale started in February helped lead the way, including energy companies, retailers and travel companies.
Health insurers’ and other stocks got an extra boost after Bernie Sanders suspended his presidential campaign. Investors were wary of Sanders’ Medicare For All proposal and other plans that could have limited profits.
Yields on Treasury bills, which signaled concerns about the economic damage caused by the pre-market coronavirus epidemic, were relatively stable. The 10-year Treasury yield was 0.75%, against 0.76% on Wednesday evening.
Nearly 1.5 million cases of COVID-19 have been confirmed worldwide, including more than 432,000 in the United States. More than 88,000 people have died from the virus, while nearly 330,000 have recovered, according to a count from Johns Hopkins University.
Overall, the price bias is: downward.
The projected upper limit is: 2,987.02.
The projected lower bound is: 2,655.74.
The projected closing price is: 2,821.38.
A white body has occurred (because prices have closed higher than they opened).
In the last 10 bars, there have been 6 white candles and 4 black candles for a trickle of 2 white candles. In the last 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.
A doji star has occurred (where a doji is above or below the previous candle). This often signals a reversal with confirmation on the next bar.
Three white candles have occurred in the past three days. Although these candles were not large enough to create three white soldiers, the upward trend is upward.
Momentum is a general term used to describe the speed at which prices move over a period of time. Generally, momentum changes tend to cause price changes. This expert shows the current values of four popular momentum indicators.
One method of interpreting the stochastic oscillator is to search for overbought zones (greater than 80) and oversold zones (less than 20). The stochastic oscillator is 94.7022. It is an overbought reading. However, a signal is not generated until the oscillator goes below 80. The last signal was on sale 7 period (s) ago.
Relative Strength Index (RSI)
The RSI shows the overbought (above 70) and oversold (below 30) zones. The current value of the RSI is 50.35. It is not a top or bottom area. A buy or sell signal is generated when the RSI leaves an overbought / oversold area. The last signal was a purchase 45 period (s) ago.
Product Channel Index (CCI)
The ICC shows the overbought (greater than 100) and oversold (less than -100) zones. The current value of the ICC is 139, which is an overbought reading. However, a signal is only generated when the indicator drops below 100. The last signal was purchased 11 period (s) ago.
The moving average convergence / divergence indicator (MACD) emits signals when it crosses its 9-period signal line. The last signal was a purchase 7 period (s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 10.535 to 2,825.904. The volume was 9% below average (neutral) and the Bollinger bands were 14% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,777.58 2,881.48 2,933.39
Volatility: 18 37 23
Volume: 23,210,072,064 30,821,922,816 21,035,692,032
Short term traders should pay more attention to buy / sell arrows while intermediate / long term traders should put more emphasis on the up or down trend reflected in the lower ribbon.
SSE COMPOSITE is currently 3.7% below its 200-year moving average and is trending downward. The volatility is high compared to the average volatility of the last 10 periods. Our volume indicators reflect the volume entering and leaving .SSEC at a relatively equal (neutral) rate. Our trend forecast oscillators are currently bearish on .SSEC and have had this outlook for the past 17 periods.
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