Asian markets to open higher

Asian markets are expected to open higher today 21/07/2016, following increases to new record levels in the US. Positivism is strongly supported by positive expectations about reports.

Japanese Nikkei225 is expected to open a t16844, 163 points higher, while the Australian ASX200 27 points higher at 5515, according to IG.

The yen weakened after the BoJ announced increased anticipation for the upcoming stimulus program. The previous forecast was for 10 trillion yen, and the new plan is worth 20 trillion. This is positive for the stock market in Japan, as exporters will be more competitive.

Rise in oil prices after better than expected data about oil inventories in the USA will have further positively affects over the stock markets.

The latest data on inflation levels in New Zealand are below expectations and speculation about a likely decrease in interest rates at the next meeting of the RBNZ intensified. Analysts estimate the new probability at 88% to 75% yesterday. This is negative for the NZD, as the likely declines will continue. Possible new short positions in the NZDUSD and many of GBPNZD after adjustments.

BGP also received strong support after the BoE announced that it is probably not necessary to decrease interest rates. During the Asian session we expect sterling to continue gains.

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