StockTwits Market Preview 6/12/09

• kileyay
• June 12th, 2009

Overseas

Futures are tilting lower, following mixed results overseas.

Japanese and Hong Kong indexes extended recent gains and broke key resistance levels. Japan’s Nikkei Index added 0.8%, closing above 10,000, good for another eight month high. Hong Kong’s Hang Seng Index cracked 19,000. China lagged despite better-than-expected May yuan loans data and positive reports on industrial output.

European markets look shaky on the heels of BlackRock’s deal to buy Barclays’ Global Investors unit in a $13.5 billion cash-and-shares transaction. The UK’s FTSE 100, Paris’ CAC 40, and Germany’s DAX are all down slightly.

Commodities

After trading above $72 a barrel on Thursday, crude prices are seeing a small retreat. In Europe, BP and Royal Dutch Shell are down. Look for stocks of energy juggernauts like Exxon Mobil ($XOM) to hesitate early.

The mining sector is in the spotlight. China is threatening to slap sanctions on BHP Billiton and Rio Tinto. The threats come following last week’s fallout between Rio Tinto and Chinalco.

Heating oil, natural gas, and most of the precious metals are trading lower.

Currencies

The Southern Hemisphere currencies are showing strength, MarketWatch reports. The Aussie and New Zealand’s kiwi have appreciated against the yen, set to gain 3% and 2% on the week. Some say Japanese investors are acquiring overseas assets in the higher-yielding currencies, suggesting increased appetite for risk.

Overnight, both the Aussie and kiwi strengthened against the dollar.

Technicals

The 200 day exponential moving average continues to act as a ceiling. The gap between the 20 DMA and the 200 DMA on the S&P 500 has narrowed to around 25 points. The market continues to hover, with no convincing breakouts in either direction.

As another chart from @alphatrends shows, the financials ($XLF) are kissing the 200 DMA. A breakthrough above the key level could spawn yet another wave of buying.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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