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Nikkei 225 continues to outperform other Indices Nikkei 225 continues to outperform other Indices JP225 has been trending up since the third week of March. Economic news from both the US and Japan are the contributing factors to the bullish trend. In the short term, a breach of 30,000 seems likely. There are strong first-quarter earnings, coupled with the dovish Bank of Japan. Elsewhere in China, the numbers are rather disappointing for Industrial Production and Retail Sales. In the US, the current hot topics are the debt crisis, the hawkish Fed, and concerns about the safety of the deposits. Nikkei 225 index has been outperforming other indices. Geopolitics and encouraging fundamentals from Japan are making this asset a lucrative one. However, one needs to exercise caution when trading JP225, as it is considered one of the most volatile indices, said Abrar Bhatti, an analyst at Exness. On the daily charts, the technical resistance area of 30,000 is yet to be broken. If it does happen, the next resistance area will be the 30,300, followed by a high made on 21st September 2021. Moreover, the index is currently trading well above 20 days Moving average, making it lucrative for trend traders. On the contrary, bears will try to push the index down to the 29,300 area. The price of 28,500 will serve as an ultimate support area.
FRED:NIKKEI225
by Exness_Official
1
🟨 RECESSION? - TIGHTER CREDIT CONDITIONSFED CHAIRMAN POWELL'S STATEMENT 🎙️ Chairman Powell remains flexible regarding future rate hikes, emphasizing that decisions will be taken on a meeting-by-meeting basis. Notably, the removal of the word "anticipates" indicates a decrease in urgency for additional rate increases. Furthermore, the absence of the phrase "sufficiently restrictive" suggests that current policy has reached the desired level. LENDING AND CREDIT CONDITIONS 💳 The Federal Reserve is closely monitoring lending and credit conditions as tighter credit may replace some of the rate hikes that could have been necessary. The current approach can be described as a "hope and pray" policy, where the Fed relies on falling inflation and tighter credit conditions to achieve a sufficiently restrictive stance, while hoping no other issues arise. POTENTIAL RECESSION ON THE HORIZON? 📉 Tighter credit conditions might lead to a recession. However, it is essential to determine how much of this possibility has already been factored into the market.
FRED:DRTSCILMShort
by TintinTrading
Macro conditions don't foretell a market crash soonSome points here looking back to 2001. (2020 was an irregular event): 1. Unemployment Rate (UNRATE green) has to start rising before SPX (yellow) drops. Currently UNRATE is declining. 2. The Unemployment Rate (UNRATE green) seems to follow the Unemployed Persons Rate (USUP dark blue). USUP just fell so presumably we can expect UNRATE to fall too this month. 3. Continuing Jobless Claims (USCJC red) and Initial Jobless Claims (USIJC light blue) just fell slightly. 4. There are still more job openings than people to fill them (JTSJOL Non-Farm Job Openings minus USCJC US Continuing Jobless Claims) And just announced today, Non-Farm Payrolls exceeded expectations. Conclusion is that macro conditions don't foretell a market crash in the immediate future. Of course that's provided we don't see another slew of bank failures, and that Congress can agree a new debt limit.
FRED:JTSJOL
by lavoriamo