The Japanese Market Starts To Decline

The Japanese Market Starts To Decline

On Thursday, the safe-haven yen strengthened after U.S. stocks closed lower in choppy trade overnight, as lawmakers try to reach an agreement on a new stimulus bill, while the Japanese stock market is declining.

On Thursday, the safe-haven yen strengthened after U.S. stocks closed lower in choppy trade overnight, as lawmakers try to reach an agreement on a new stimulus bill, while the Japanese stock market is declining.

Meanwhile, Brazil's health authority Anvisa said that a volunteer in a clinical trial of the COVID-19 vaccine developed by AstraZeneca and Oxford University has died, but recommended that the trial should continue. The Investor sentiment was also dampened after the International Monetary Fund or IMF lowered its 2020 growth forecast for Asia-Pacific.

Japanese stocks closed modestly higher on Wednesday. The benchmark Nikkei 225 Index is losing 147.93 points or 0.63 percent to 23,491.53, after touching a low of 23,459.77 earlier.

Fast Retailing is adding almost 1 percent, while market heavyweight SoftBank Group is down 0.2 percent.

Meanwhile, Canon and Mitsubishi Electric are declining more than 1 percent each, Sony is lower by almost 1 percent and Panasonic is down 0.3 percent. The major exporters are lower on a stronger yen.

Among automakers, Honda is losing 2 percent and Toyota is declining almost 1 percent. In the tech space, Tokyo Electron is adding 0.5 percent, while Advantest is down 0.4 percent.

Sumitomo Mitsui Financial is lower by almost 1 percent and Mitsubishi UFJ Financial is down 0.6 percent, in the banking sector.  

Japan Steel Works and Hino Motors are higher by almost 4 percent each, while Nippon Light Metal Holdings is rising almost 3 percent, this is the current situation of the major gainers.

However, the ANA Holdings is losing more than 4 percent after Kyodo News cited company sources as saying that the company expects to book a record net loss of about 530 billion yen, or $5 billion, for the business year through March.

Also, the Central Japan Railway is lower by almost 4 percent and Chugai Pharmaceutical is declining more than 3 percent.

The U.S. dollar is trading in the upper 104 yen-range on Thursday, in the currency market.

On Wall Street, stocks closed modestly lower in choppy trading on Wednesday, as traders kept an eye on the latest developments in Washington, as lawmakers try to reach an agreement on a new stimulus bill.

In a post on Twitter, the Speaker and Treasury Secretary Steven Mnuchin have called for committee chairs to work to resolve differences about funding levels and language according to the post of the House Speaker Nancy Pelosi's deputy chief of staff Drew Hammill.

The Nasdaq dipped 31.80 points or 0.3 percent to 11,484.69, S&P 500 also edged down 7.56 points or 0.2 percent to 3,435.56, and the Dow fell 97.97 points or 0.4 percent to 28,210.82.

The French CAC 40 Index and the German DAX Index slumped by 1.5 percent and 1.4 percent, respectively. However,

The major European markets all moved to the downside on Wednesday. The U.K.'s FTSE 100 Index tumbled by 1.9 percent, while the French CAC 40 Index and the German DAX Index slumped by 1.5 percent and 1.4 percent, respectively.

The Energy Information Administration or EIA showed data smaller than the expected drop in oil stockpiles and an increase in gasoline inventories. WTI crude oil for December delivery slumped $1.67 or about 4 percent to $40.03 a barrel. The Crude oil prices drifted lower on Wednesday, weighed down by concerns over a drop in energy demand.


Economic Calendar Highlights

  • U.K. Retail Sales MoM: 7:00am

Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity.

 

A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.


  • U.S. Initial Jobless Claims: 1:30pm

Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.


A higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD.


  • U.S. Existing Home Sales: 3:00pm

Existing Home Sales measures the change in the annualized number of existing residential buildings that were sold during the previous month. This report helps to gauge the strength of the U.S. housing market and is a key indicator of overall economic strength.


A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.



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