{"id":15278,"date":"2024-10-08T02:15:04","date_gmt":"2024-10-08T02:15:04","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15278"},"modified":"2024-10-08T02:15:04","modified_gmt":"2024-10-08T02:15:04","slug":"nikkei-retreats-as-u-s-yields-rise","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/nikkei-retreats-as-u-s-yields-rise\/","title":{"rendered":"Nikkei Retreats as U.S. Yields Rise"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nikkei dropped 1.52% to 39,000.15 after Monday\u2019s strong rally.<\/li>\n\n\n\n<li>U.S. yields climbed, pressuring markets as Fed easing expectations fade.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p class=\"wp-block-paragraph\">Japan\u2019s Nikkei index retreated 1.52% to 39,000.15, driven by Wall Street\u2019s overnight fall and rising U.S. Treasury yields.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/10\/image-6-1024x456.jpeg\" alt=\"\" class=\"wp-image-15279\" style=\"width:1044px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Picture: The Nikkei225 retraces to 39,000, facing resistance after reaching a high of 39,833 as traders eye U.S. data for market direction, seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app.<\/a><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Looking at the chart, we&#8217;re seeing the Nikkei show a retracement after a sharp rise to 39,833.65. The price is now consolidating around the 39,000 level after hitting a recent low of 38,654.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The MACD is showing signs of potential bullish momentum recovery, though it remains below the signal line, suggesting that a breakout may still be on hold.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The price is likely to test the 39,000 mark again, and if it breaks above the 50-period moving average, further upward momentum could bring it to the 39,500 resistance level.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>You might be interested in: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/nikkei-set-for-decline-as-ishiba-shakes-markets\/\">Nikkei Set for Decline as Ishiba Shakes Markets | VT Markets<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">What to Expect<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Traders should also keep an eye on U.S. inflation data and Federal Reserve talks later this week, as these events may impact global equities, including the Nikkei.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Topix index also dipped nearly 1%, reflecting broader market concerns after last Friday\u2019s strong U.S. jobs report.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The resulting rise in U.S. yields, with the 10-year yield climbing to its highest since August, dampened sentiment as traders reduced expectations for another large rate cut.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Fed&#39;s Musalem argues for more rate cuts, says data to drive easings <a href=\"https:\/\/t.co\/RA9HLjnHNV\">https:\/\/t.co\/RA9HLjnHNV<\/a> <a href=\"https:\/\/t.co\/lTedS9P8Ke\">pic.twitter.com\/lTedS9P8Ke<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1843453796837421368?ref_src=twsrc%5Etfw\">October 8, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Tensions at an All Time High<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Recent geopolitical tensions, particularly in the <strong><a href=\"https:\/\/www.aljazeera.com\/news\/liveblog\/2024\/10\/8\/live-israel-kills-dozens-in-gaza-as-palestinians-mark-one-year-of-war\">Middle East<\/a><\/strong>, along with U.S. jobs data, have driven concerns over oil prices and higher yields, which in turn affect risk sentiment.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">When the last war involving a major petrostate broke out, in Ukraine in 2022, crude surged past $100 a barrel. Could that happen again? <a href=\"https:\/\/t.co\/eqHLmzTNsy\">https:\/\/t.co\/eqHLmzTNsy<\/a> \ud83d\udc47<\/p>&mdash; The Economist (@TheEconomist) <a href=\"https:\/\/twitter.com\/TheEconomist\/status\/1843425845567733897?ref_src=twsrc%5Etfw\">October 7, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">This explains part of the retracement seen on the Nikkei, which is sensitive to external market factors like Treasury yields and global energy prices.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Start trading now \u2014 click <\/strong><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\">here<\/a><\/strong><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Japan&#8217;s Nikkei dipped on Tuesday, reflecting rising U.S. Treasury yields. This decline followed reduced hopes for large rate cuts after a robust U.S. jobs report last week. &#8211; vtmarkets.com <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[31,37],"class_list":["post-15278","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-indices","tag-nikkei"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15278","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15278"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15278\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}