Japan’s Nikkei 225 is trading down -2.42% on the day and that is on pace for its worst declining day since December 20, 2022.
Declines come on the back of selling in the US stocks yesterday. After earlier gains in the day on Thursday, the S&Pm, Dow and NASDAQ indices all retreated by over -1.23% with the NASDAQ decline of -1.40 the biggest loser. Catalysts included:
- Israel tension with Iran. Israel prepared for potential retaliation following its suspected involvement in the killing of Iranian generals, with Netanyahu stating Israel would defend itself against threats.
- The escalation contributed to market edginess and a spike in oil prices.
- Fedspeak yesterday was also more hawkish.
Traders are also cautious ahead of the U.S. nonfarm payrolls report tomorrow at 8:30 AM ET.
For the Nikkei, the price gapped down following the sharp selloff in the US stock session. The momentum lower has not abated. The low price from March 12 at 38271.38 is the next target. The index is trading at 38812.
The Nikkei reached an all-time high at 41087.75 on March 22. That surpassed the 1990 high at 38957. With the price currently trading at 38812.19, it is back below the 1990 high. That could be problematic technically for the index.
This article was written by Greg Michalowski at www.forexlive.com. Source