Nikkei 225 Hits A Two Week Low
The Coronavirus, a virus that infects mostly pigs, cats and other animals, but can also jump from animals to humans, and from one human to another continues to grapple the world economy. The coronavirus that has inflected 10s of thousands of people and killed over 1800 people finally has a name. The virus which has origins in Wuhan, China is called COVID-19.
In an attempt to slow the spread of COVID-19, at least 24 provinces, municipalities and regions in China have told businesses not to resume work before Feb. 10 at the earliest. Specifically, according to Dun & Bradstreet researchers found that 163 of which are in the Fortune 1000, have one or more direct or “tier 1” suppliers in the impacted region.
This shut down along with the virus impact to the global economy could impact more than 5 million businesses worldwide.
Last night, Apple announce that it would not meet its quarterly revenue forecast because of constrained worldwide supply of its iPhones and lower Chinese demand resulting from the virus outbreak.
In its letter Apple said that its prior guidance was based on its “best estimates about the pace of return to work following the end of the extended Chinese New Year holiday on February 10.” As China’s return to work has proved halting, and the coronavirus itself more intractable than some anticipated, the company’s change in guidance is almost unsurprising.
The Cupertino-based firm cited two key reasons for the change in guidance: First, that “worldwide iPhone supply will be temporarily constrained.” This is not surprising given what we’ve learned about Foxconn’s less-than-quick return to capacity at various factories. Apple also said that “demand for our products within China has been” impacted by the virus.
On the Apple news Nikkei fell to two-week low. The Nikkei 225 more commonly called the Nikkei, is a stock market index for the Tokyo Stock Exchange (TSE). The Nikkei-225 Stock Average is a price-weighted average of 225 top-rated Japanese companies listed in the First Section of the Tokyo Stock Exchange. The Nikkei 225 is calculated every 15 seconds during the Tokyo Stock Exchange's trading hours and in recently days, it has been a roller coaster.
So where is the Nikkei 225 heading next, lets go to the charts?
Monthly Chart (Curve Time Frame) - monthly demand is at 19450 and the weekly supply is 24150.
Weekly Chart (Trend Time Frame) – the trend is sideways.
Daily Chart (Entry Time Frame) – the chart suggests if price can get below the 22800 level, price will move a lot lower in the coming weeks.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Posted via Steemleo