Two Ways: Economic Godzilla Hits Japan
Strengthen your portfolio in good times and bad.
Japanese exports were nearly cut in half in March from a year earlier but some are pointing to signs that the slowing pace on a month-to-month basis could be suggesting the worst is over, according to the New York Times. Exports fell 45.6% in March while imports dropped 36.7%. But exports to China declined 31.5% for the month. This compares with a 39.7% decline in February, and a 45.2% drop in January, all signs that China's huge stimulus package may be taking effect.
Still, the Bank of Japan is expected to downgrade its forecast for the economy again later this month showing a contraction between 3 and 5%.
From the Bull Pen: On a technical basis, look to Honda Motor (HMC). Short term support near $27 and $26 (gap fill), could provide bulls with a decent entry.
From the Bear Cave: Will the Japanese Yen ETF (FXY) retest its March low? Those bearish can play the downside; a buy stop can be set 2% from entry.
Quick Check Around the World
Asian trading closed with the Hang Seng -2.67%, Nikkei 0.18%, India -0.74%, Shanghai -2.94% and Taiwan 0.08%.
Glancing towards Europe, we see the CAC 0.35%, DAX 0.78%, FTSE 0.62%
As of 8:10 AM EST, S&P Futures are trading -5 to 842.00, and Nasdaq futures are -5 to 1322.00.
A Look at Commodities
Over in commodities, crude oil is trading +0.06 to 48.61 while gold is +3.00 to 885.70 this morning. Silver is +0.050 to 12.065 and copper -3.65 to 205.05.
The dollar index is -0.1250 to 86.7650.
No economic events today but click here for the full trading radar:
Hump day today. Good luck!
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