A very welcome quiet Friday after another volatile week for Asian markets but at least this one has been positive for the Nikkei. Closing down today (-1.3%) as dealers continue to question the BOJ’s drastic monetary policy (despite rumors of agree officials attempting to silence the media) but the Nikkei has closed up almost 7% on the week. There are rumors that officials are requesting a more upbeat assessment of the economy in an attempt to change the mood of the populous! One has to question if it would not be easier to chance another direction, having seen no improvement for the past 25 years. China and HSI also closed small changed despite an unclear trading direction.
In Europe, most dealers were awaiting the result of the BREXIT talks as it was understood to break ahead of lunchtime. Then, the talk was for a press conference mid afternoon, then delayed until dinner. Late this evening we are still waiting news but we have seen GBP make small headway throughout the day to close 1.4360 (+0.2%). UK Retail Sales also claiming some of that coo dose (estimated 3.6% actual 5.2%). All core European indices had the same trading pattern this Friday – opening at the days highs only to close at the days lows. Between them they all returned losses of around -0.6%, IBEX closed weaker at -1.2%. Oil was again the excuse dealers used as we saw the price decline around 3.5% today.
The US markets were under a little pressure at the open but spent the reminder of the day attempting to recover, which in all fairness they did reasonably well. The DOW and S+P closed small lower whilst the NASDAQ closed up +0.4%. It does not sound all that but when considering that oil was selling-off most of the US afternoon trading, it is quite a result. The Dow closed positive for now on the close of our weekly models leaving support at 16170 for next week with resistance starting at the 16525 level.
