The Nikkei Drops For The Seventh Consecutive Day On Wednesday

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Current Futures: Dow +31.00, S&P +4.80, NASDAQ +5.00

Asian markets are currently trading in the red, extending the declines seen over the last few days of trading. With tonight’s declines, the Japanese Nikkei is down for the seventh day in a row.

The Japanese Nikkei slipped on Wednesday for the seventh consecutive day, even though earlier in the day, the U.S. market managed to close barely above the break-even line. Moreover, the S&P futures formed a bullish pin-bar on the daily chart, a pattern that is usually interpreted as a reversal sign. 

Asian markets declined on Wednesday as the Japanese yen reached the lowest value against the dollar since February, TheLFB-Forex.com Trade Team noted. An important part of the Japanese economy is driven by exports, approximately 25%, and many of these exports leave for the U.S. As such, any signs of strength that the yen shows compared to the dollar are interpreted as unhelpful by investors since it will reduce the profit margin of most companies. The pharmaceutical, carmakers and the financial industries were among the worst performers on Wednesday, but, unlike in the previous few days, mining companies managed to stay in the green, after Alcoa posted a smaller than expected loss throughout the second quarter. 

Overnight, the Japanese Nikkei declined 49.6 points (0.53%) to 9,371.08. The Australian S&P/Asx lost 7.50 points (0.20%) to 3,760.40

Crude oil for July delivery was recently trading at $60.70 per barrel, higher by $0.50. Wednesday was the seventh day in row in which crude oil declined. 

Gold for July delivery was recently trading higher by $2.90 to $912.20. For now, gold is trading near the lowest value since early May.

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