Crude oil inches up on weak Yen: Dani Commodities

Dani Commodities' report on Crude oil

Crude oil futures are trading slightly higher in the Asia electronic session today, buoyed by weakness Japanese Yen and gains in the stock markets. Japanese stocks jumped Tuesday to lead Asian markets higher, with gains spread across sectors on a weakened yen and a report the government is considering a cut in corporate taxes. The Nikkei Stock Average rose 1.5 percent, while elsewhere in Asia, South Korea’s Kospi added 0.6 percent, and Australia’s S&P/ASX200 gained 0.1 percent.

The Shanghai Composite inched 0.1 percent higher in choppy trading after rallying 2.4 percent in the previous session, while Hong Kong’s Hang Seng Index added 0.4 percent, on a path to a fourth straight day of gains.

In the currencies, the U.S. dollar rose with the yen losing ground after a report that Japan will look into cutting corporate taxes. The ICE dollar index, which tracks the U.S. currency’s movement against six rivals, rose to 81.499, up from 81.331 late Monday in North America trade. The euro fell to USD 1.3293 from USD 1.3308.

On the data front today, Japan's core machinery orders, seen as a leading indicator of capital spending, fell 2.7 percent in June, the Cabinet Office said Tuesday. Core machinery orders, rose 10.5 percent in May, fell 8.8 percent in April, and rose 14.2 percent in March.

WTI light sweet crude oil futures for September delivery are trading up at USD 106.16 per barrel on the New York Mercantile Exchange. It rose 14 cents, or 0.1 percent, to settle at USD 106.11 a barrel yesterday.

MCX CRUDE OIL
International: Major Support for WTI at USD100 Bullish above USD 100
Domestic: Sell at 6540, Stoploss 6576, Target 6500.

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