Snapshot: The Nikkei 225 is under pressure, tracking overnight weakness, despite slightly stronger-than-expected Japanese Corporate Goods Price Index data (Apr). The index closed down nearly 2% yesterday and continues to feel pressure today from domestic forces.
- Watch for continued weakness if the Nikkei breaks below 61,000.
- Risk of continued pressure from stronger-than-expected PPI potentially forcing the BoJ to act sooner rather than later.
Bias into NY: Short Nikkei 225, targeting a move towards 60,500 as continued pressure from domestic inflation data outweighs any positive sentiment from stable US 2Y yields.