Key World Stock Markets Briefing
$DIA, $DAX, $GLD, $SLV, $USO, $OIL
At the time of this report, Thursday, 29 July 3:56a EDT, the US major market index futures are flat to unchanged, with a Bearish Bias.
Weak inflation data and the huge fiscal stimulus have increased the pressure on BOJ to create a positive surprise for the markets in here. The announcement may impact the markets for a while in the NYC morning session.
The Bank of Japan’s (BOJ) most anticipated policy announcement in years left investors underwhelmed, sparking a surge in the JPY and sending Japanese government bonds to their biggest retreat since Y 2013.
Japan’s currency jumped 1.9% Vs the USD after the BOJ kept its government-bond buying target and policy interest rate unchanged, opting instead to increase ETF (exchange-traded fund) purchases.
DJIA at 18456.35, -0.09% retested the lower end of the range 16400-600 but looks ready for a move Northwards for the targets of 18900-19000 within 1-3 sessions.
DAX at 10274.93, -0.43% is struggling around the resistance of 10400 as expected and a break below 10250 can push it further down to 9900.
Nikkei at 16411.39, -0.40% is marking another Inside Day pattern after the sharp decline Wednesday to 2950. This signals an impending expansion of volatility, possibly a breakout from the range of 2950-3000 to determine the near term trend.
On Gold, Silver & Crude Oil
Precious metals may be influenced a bit by BOJ policy decision Crude Oil continues downtrend.
Gold at 1337.01 is yet to rise above 1350 convincingly, which strengthens my expectation of seeing a sideways movement in 1310-50 for a few sessions, unless the BOJ action triggers something dramatic and it did not.
Silver at 20.2330 may test the resistance of 20.50 again, but is expected to remain in the range of 19.50-20.50 another couple of sessions before the next trending move.
Brent Crude at 43.18 is just holding above the support of 4300-42.90 without much strength and WTI Crude Oil 41.06 is trading below the support of 41.70. While WTI Crude may fall towards 39, Brent Crude may test 40.50 on the Southside.
Note: Crude Oil headed for the biggest monthly decliner in a year as “brimming” Crude Oil and fuel inventories spurred a retreat toward 40 a barrel. Futures in New York dropped 0.6%, extending their July loss to 15%.