Nikkei 225 is under pressure again as it fails to hold above 30,000 points. ConAgra and Constellation Brands report quarterly earnings this week.
The Non-Farm Payrolls week starts with the Nikkei 225 under pressure as the Japanese stock market index fails to hold above 30,000 points. The Parliament confirmed the new Prime Minister in Japan, but the stock market is not impressed as a possible double top formation suggests more downside is likely to happen.
European stock market indices opened the new trading week with small losses. Excepting the Spanish index, which is up by 0.43% at the time of writing this article, all other major indices are in the red territory. The FTSE 100 in the United Kingdom is down by 0.33%, the German Dax index is down by 0.4%, while the French CAC40 index is down over half a percentage point. In the United States, the stock market futures are in the red, pointing to a weak start of the trading week.
Today is a big day for oil traders because the OPEC+ meetings start. The focus is on whether the cartel will increase supply to meet the rising demand, and if it does so, what would the impact on the oil price be? In any case, the WTI crude oil price remains well bid, trading above $75 ahead of the OPEC+ decision.
Natural gas prices keep rising, up another 2.5%, while gold and silver open the trading week flat.
Economic Events to Consider Today
The OPEC+ decision is the main event of the trading day. Also, this is the Non-Farm Payrolls week, so any market moves prior to Friday’s release should be taken with a grain of salt.
Today's Markets to Watch
Today's markets to watch are Nikkei 225, Constellation Brands, and ConAgra.
Nikkei 225 Outlook
Nikkei 225 moved higher after the former Japanese Prime Minister, Suga, announced his resignation. The market participants liked the fiscal stimulus packages promised by other candidates, so the stock market rose while the Japanese yen declined. Yet, the index found only sellers while above 30,000 points. The pattern now resembles a double top formation, and a drop below 27,000 will put even more pressure on the Nikkei 225 index.
Constellation Brands is one of the companies reporting its quarterly earnings this week. The technical picture reveals a triangular pattern forming on strong support. A drop below $200 should weigh on price even more, while a daily close above $220 would suggest more upside is possible in the short and medium term.
ConAgra reports its quarterly earnings this week as well, and the price action just broke the upper trendline of a contracting triangle. While above $32, the bias remains bullish, and a daily close above $36 suggests even more upside is possible.
Winners and Losers
WTI crude oil price remains bullish, trading above $75 ahead of the OPEC+ decision; Nikkei 225 looks weak.