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May 31, 2023
A quick look at today: the Nikkei retained its composure around the 30,900 level after dropping 1.41%.
Investor risk appetite was subdued as stocks were sold off in favour of perceivably safer alternatives such as government bonds. Yields on one month US government debt fell from 6% to 5.31%.
Amid the market gloom, Industrial Production in Japan fell short of market expectations (0.5%) with a reading of -0.4%, continuing the decline from the previous figure of 1.1%. Japan Retail Sales fell short of the 5.8% projections, with new data of 5%.
Nikkei made an initial break below its 5 day Simple Moving Average at 30,953, a possible indication of a forthcoming negative trend.
Several technical indicators are adding weight to the bearish momentum seen today and forecasting the Nikkei to extend its recent losses.
In the meantime, negative performances are also seen in other markets, ASX 200 drops 1.64% today and closed at 7,209.3. CAC is down to 7,098.7, losing 111.05 points, after ending the previous session around 7,209.75. Hang Seng falls 1.94% today and closed at 18,600.
Furthermore, Japan Capital Spending (YoY) (Q1) is scheduled for today at 23:50 UTC. Japan 10-Year JGB Auction scheduled to come out tomorrow at 03:35 UTC.
The index has been trending positively for about a month. The Nikkei has recovered 203,066% since descending to a significant low of 15.42 around 8 months ago.
