Key World Stock Markets Briefing
$DIA, $DAX, $OIL, $USO, $GLD, $SLV
Commentary: The markets are waiting for US Fed Chairwoman Yellen’s speech in Jackson Hole Friday, 26 August, all the markets remain in range bound mode.
DJIA at 18547.30, +0.30% spent the 12th consecutive session in the range of 18450-700, which may see a breakout Friday, after the Ms. Yellen speech.
DAX at 10592.88, +0.94% stayed inside the range of 10450-650, waiting for guidance from the US markets and may continue for another 1-2 session in the same range. Bias Neutral.
Nikkei at 16580.38, +0.50% has been trading sideways in the range of 16350-650 to with the bias slightly Bullish but needs a rise above 16650 confirm it. A rise in USDJPY (100.36) above 101.50 could be very helpful for Nikkei.
Shanghai at 3080.33, -0.30% has not been able to rise above 3115 to confirm Bullishness and now tests the near term support of 3080, below which comes the major support area 3060-50 from where buyers may emerge.
Nifty at 8632.60, +0.04% shows a clear contracting range in 8550-8700 in the last few days. Unless a break above 8700 is seen very soon, the chances of a break below 8550 may rise, triggering downside targets of 8400 or lower.
Crude Oil, Gold & Silver Markets
A pullback in US Dollar (.DXY) Index (94.84) has helped the precious metals to hold the ground for now but strength is still missing. The renewed speculation of supply glut keeps Crude Oil weak.
Gold at 1337.24 has managed to keep the near term range of 1330-60 intact so far but failure to rise above 1340 immediately may push it down to 1330 oz more, below which 1310-1300 comes into consideration.
Silver 18.96 is trading inside the previous day’s range of 18.80-19.10, but unless a break above 19.20 is seen in the next couple of sessions, the chances of further decline towards 18.55-45 will be stronger.
Brent Crude at 48.64 is correcting as expected but may see a bounce to 49.80-50.10 before making a short term bottom around 48.00-47.50. Similar bounce to 48.00 can be seen for WTI Crude Oil at 46.79 before it tests the support of 46.00.