U.S. Bombs Afghanistan and Dow Market Bludgeons U.S. Bombs Afghanistan and Dow Market Bludgeons | DZHI - DZH International 
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U.S. Bombs Afghanistan and Dow Market Bludgeons

  • DAR Wong
  • 17 April 2017

Fundamental Outlook   The U.S. inflation reflected by producer and consumer prices contract. American military action hits Afghanistan unexpectedly but hammers Dow Jones market. Japan reports higher inflation and growth in machine orders. U.K. inflation stays resilient.

The U.S. producer prices shrank 0.3 percent and first time decline after 7 months, compared to 0.3 percent gains in February. Unemployment claims improved in the week ended 8 April at 234,000 and below forecast.

American consumer prices shrank 0.3 percent in March and turned negative for first time in past 13 months. Excluding food and energy, core prices also dropped to minus 0.1 percent. Retails sales remained weak at minus 0.2 percent while core sales was flat at par.

On Friday morning in Asia, U.S. military force dropped a non-nuclear bomb on Afghanistan. Market analyst interpret it as a warning to North Korea that reaffirms the intention to conduct its sixth nuclear test. Dow Jones benchmark dropped 135 points on Friday at market close.  

China’s trade surplus hit USD23.9 billion in March, higher than expectation and versus a USD9.1 billion deficit in February. Consumer prices gained 0.9 percent from a year ago and below forecast. Another separate report on producer prices maintains strong growth at 7.6 percent on annual basis and above median forecast.

Japan’s prelim machinery tool order increased 22.6 percent in March from a year ago. Core machinery order rose 1.5 percent in February after declined 3.2 percent in previous month.

Japan reports the producer prices on annual basis rose 1.5 percent and highest in past 4 months. The separate report on revised industrial production rose 3.2 percent in March and highest record in 11 months.

German ZEW sentiment on institutional investors rises to 19.5 and highest in past 10 months. Industrial production in Eurozone shrank 0.3 percent in February.

British consumer prices expanded 2.3 percent in March on year basis and stays resilient.  Another report on retail price index also rose 3.1 percent from a year ago and in firm momentum.

U.K. average earning on quarterly basis ended February stayed firm at 2.3 percent gains. Claimants for jobless benefits increased 25,500 in March and higher than forecast. Unemployment remains steady at 4.7 percent.

 

Technical Forecast   USD/JPY traded lower last week despite USDX fared stronger. Market landed at 108.50 level before weekend. This week, we foresee the trend may drive lower at 107.30 support before bargain-hunting emerges. Resistance will act upon 110.00 region in case of recovery.

EUR/USD traded in narrow range as we predicted last week. Trend appears to be bearish with resistance emerging at 1.0680 region. This week, we reckon the bear may test lower grounds at 1.0500 before short-covering emerges. We presume Euro will move as we approach French election in May.

GBP/USD indicates a neutral pattern after it has failed to pierce above 1.2600 levels. This week, we would observe the pattern for a breakout beyond 1.2600 resistance or 1.2420 support. Double possibility ambushes in market and need risk control in case of adversity against your position.

 

Disclaimer: This article is written for general information only. No liability by the writer, publisher or any third party involved in the distribution of this work.

DAR Wong is a registered fund manager in Singapore with 28 years of global trading experiences. You may reach him at dar@pwforex.com


About the Author
DAR Wong (Singapore)
An international speaker with 27 years of trading experience in the global financial markets, DAR is a Market Master and author of “Living Daylight in Stock Market: Monetizing Your Profits in 8 Days”.

DAR Wong is an active market trader, registered fund manager, educator and author.He began his career in 1989 as an institutional Futures trader with Bank of America. DAR Wong specializes in trading global derivatives and financial markets. He has 26 years of experience accumulated through tenure with Bankers Trust, Barclays Bank, Citigroup (Smith Barney Shearson Inc) and as an independent trader.

DAR is the author of “8 Ways to Invest in China’s Emerging Market” and contributes frequently to regional media, including financial TV/Radio programmes, newspapers and magazines for professional traders and active investors.

He is a popular and sought after international speaker who has presented to financial professionals and investors throughout the region including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China, Cambodia, Myanmar, Philippines, Sri Lanka, India, South Korea, Laos, Vietnam, United Kingdom and Middle East (UAE).

DAR is registered with NASD (now known as FINRA) series 3 and 5 as approved by National Futures Association (NFA) of USA and holds a current portfolio as Fund Strategist and Advisor with Dektos Investment registered with Monetary Authority of Singapore.

DAR is profiled as “One of the most successful traders – Market Masters” in Brent Penfold’s bestselling book “The Universal Principles of Successful Trading “. In January 2015, DAR was honored with Outstanding Award for International Financial Market Analysis granted by ASEAN Commerce (Thailand).

DAR is the author of "8 Waysto Invest in China's Emerging Market" and contributes frequently to regional media, including financial TV/Radio programmes, newspapers and magazines for professional tradersand active investors.1

He is a popular and sought after international speaker who has presented to financialprofessionals and inverstors throughout the region including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China,Cambodia, Myanmar, Philippines, Sri Lanka, India, South Korea, Laos, Vietnam, United Kingdom and Middle East(UAE).2


Year
2003 - Set up ASPRI to provide hedging advisory for corporate clients and training for financial professionals
2009 - Released first book “8 Ways to Invest in China’s Emerging Market”
2010 - Profiled as “one of the most successful traders – Market Masters” in Brent Penfold’s bestselling book “The Universal Principles of Successful Trading” along with Larry Williams, Andrea Unger, Michael Cook, and Daryl Guppy etc
2011 - Received “Spirit of Enterprise”awarded by Singapore Management University in Singapore
2012 - Honored with Individual Diamond Career (Thailand) awardedby Royal Privy Council of Kingdom of Thailand
2013 - Appointed Vice Chairman of ASEAN-China Commerce Association and led a delegationtothe annual China-Asean Expo in Guangxi Province, China
2014 - Fund Manager cum Director in Dektos Investment Corporation registered with Monetary Authority of Singapore
2015 - Released new book “Living Daylight in Stock Market - Monetizing Your Profits in 8 Days” in January
2015 - Honored with Outstanding Award in International Financial Market Analysis awarded by ASEAN Commerce (Thailand)
2016 - Honored with Medal of Integrity by Royal Councilin Palace of Palembng, Indonesia

References

1.TV programs on ChannelNewsAsia (Singapore);Radio on 95.8 Capital (Singapore); Newspapers such as The Borneo Post (Malaysia), 资汇报 (Malaysia); Regional financial magazines such as The Analyst (India), 东盟商界(ASEAN, China), 资本杂志 (Malaysia).

2.Spoke at events for CME Group, Euronext LIFFE, Tokyo Commodity Exchange, Singapore Exchange, Korea Exchange, Bursa Malaysia, Thailand Futures Exchange, Jakarta Futures Exchange, Indonesia Commodity and Derivatives Exchange, Tokyo Commodity Exchange, Interactive Brokers, Xinhu Futures, Hangzhou Money Fair, China (Shenzhen) International Finance Expo, China (Guangzhou) International Finance Expo, Euromoney, CIMB, Maybank, RHB, UOB Bank, Asia Trader & Investor Convention, Global Rubber Conference, International Rubber Conference, Malaysia Rubber Board, International Rubber Research and Development Board,Malaysia Ministry of Agriculture, Rubber Industry Smallholders Development Authority, Vietnam Rubber Association, Cambodian Rubber Association, Bureau of Agriculture Research Philippines, Myanmar Rubber Planters & Producers Association etc.