Hong Kong Exchanges Only Up Thin
At the end of trading on the Hong Kong stock exchange’s benchmark index on Tuesday closed with a posted limited gains. The positive sentiment that had occurred in the Chinese markets disappeared at the end of the session so that the increase in Hong Kong is also smaller compared to the opening of trading on Tuesday.
Blue-tier stocks in Hong Kong closed with varied looks. Cheung Kong ended down by 0.60 hkd be 138.00 hkd. Hang Seng Bank ended down 129.90 at 0:50 hkd be hkd. Wharf Holdings increased by 0:55 hkd to the level of 55.60 hkd. Henderson Land increased by 0:05 hkd be 51.65 hkd.
At the end of trading Tuesday the benchmark index in Hong Kong stock exchange closed up limited. Zinc hangs spot index closed with a gain of 63.58 points written off or 12:27 percent at 23808.28 points.
Index futures hang zinc Tuesday closed at 23 764 points. Index futures recorded a slight increase only by 26 points compared to the previous closing.
Analyst estimates that in Wednesday’s trading Hong Kong stock exchange is likely to be influenced by technical conditions. US stocks closed tonight to celebrate Veterans Day.
In this Wednesday trading index futures technically hangs zinc movement in Hong Kong is likely to experience consolidation. The lack of trade direction will cause movement of the index will be influenced by the technical. The Hang Seng Index may reach the strong resistance level at position 23900 points, with the next resistance level at 24100. As for the level of support if the back there is a decrease in the level of 23 550 points.
Technically, the index in the trading session today, Wednesday (12/11) is likely to strengthen, test positive trend. In a bullish hammer formation M15 chart gives an opportunity for the index to move upside. However, the volume is likely to increase, as well as an early indication of a bullish index. In addition, RSI, on the M15 chart, is in the oversold area, cue upside.
It is estimated, the index test the first resistance level of 23 850 and 23900. If it fails in 23803, we then estimated the index tends to retest the support level of 23 760 and is likely to be continued until the 23730 area.
Sterling Alert Ahead of BoE Inflation Report
Although higher, Sterling remained trading not far from 14-month lows versus the US dollar on Tuesday, ahead of the Bank of England’s quarterly inflation and wage data releases.
Weak wage growth could reinforce expectations that the BoE’s first rate hike since 2007 will occur in the 2nd half of 2015, which will keep the pressure on Sterling. While the BoE quarterly inflation report is expected to show a downward revision of inflation projection due to the weakening of short-term energy and food prices. Outlook also potentially lowered economic growth following the emergence of the new uncertainty in the Euro zone, which is being threatened by a slowdown and deflation.
“The market is likely to be more sensitive to negative surprises in the wage data,” said Jonathan Webb, head of forex strategy at Jefferies. Webb also added that the inflation report could bring a dovish bias, which will make Sterling depressed.
Technically, the trading session today, Wednesday (12/11), pound sterling-dollar pair has an opportunity to move in a negative trend.
The weakening of the pound sterling primarily expected soon reexamine the minimum support at 1.5850 and 1.5800 maximum. Meanwhile, if the pound sterling was able to break and hold above 1.5907, then another alternative scenario that is likely to test resistance Pounds in 1.5930 and 1.5980 area.
Opportunity Gold Prices to go $ 1000
Gold prices dropped 16 percent this year from the position in March after it signaled a strengthening US economy was able to move the US dollar to its strongest position on other currencies in the past five years, other than that there is speculation that the Federal Reserve will move to raise interest rates back. On the other hand, the fall in oil prices helped the US inflation rate under control and the US stock market has increased as well.
Currently, there are no supporting sentiment that could support gold investment. The potential rise in US interest rates facing the front, The dollar appreciation, which both this sentiment into a solid unity for investors settled on gold investment back. At the same time the fear of inflation also eased.
Long positions are maintained investors decreased by 25.226 45.072 contracts into futures and options contracts which expire on November 4, based on data from the US Commodity Futures Trading Commission. The fall of the long positions that investors maintained 12 percent of this was the largest decline since December 2012 last. The number of assets in the form of ETF in the SPDR Gold Trust, declined 1.9 percent to a decrease in the third week in a row. The US inflation rate, measured from bond interest 5T, declined 12 percent this year, this was the biggest since 2008.
Opportunities fall in gold prices to $ 1,000 more wide open with the fall in crude oil prices. On the other hand, the increase in gold purchases in Asia will become a deterrent to further fall in gold prices. Chinese gold demand will rise by 20% within three years, according to the World Gold Council. Even so, the rise in the stock market has undermined the allure of gold as a protective investment objectives, expected gold prices were nearing the lowest position. So far, the price of gold at the end of the year is estimated at around $ 1.050.
In a technical perspective, during the last 14 trading days known index, gold prices are still below the number 30 in the latest 5 trading days on the 6th November. This indicates that there is still an opportunity to strengthen the gold price back. Some authorities believe these increases chances of at least one month in the future due to higher stock market.
The Fed has stated that the economy has made remarkable progress to achieve the target of reducing unemployment and price stability so that could be a reason for them to raise interest rates earlier than expected market. The increase in interest rates will further make gold lose its allure, especially considering gold bullion has been the target of investors because of the potential increase in price. Meanwhile, the US unemployment rate is the lowest level for six years in October yesterday.
While central banks in Europe and Japan tried to stimulate the economy, the price of gold in the spot market declined by 3.5 percent this year, sales of gold bullion in the nomination yen rose 5.1 percent while the euro rose 6.5 percent as well. Seeing the potential of quantitative policy both in Europe and Japan, will be a positive sentiment for gold in the long run.
Stimulus policies tend to make gold rose. During December 2008 – June 2011, the price of gold has increased by 70 percent after central banks globally do increase the money supply in an amount not previously been abysmal. This prompted concerns about the potential for huge inflation. Vice versa, when the stimulus is reduced and terminated, gold prices fell 28 percent in 2013, this is a drop in gold prices the most in three decades, wait for a few investors lost confidence in gold.
Technically, the trading session today, Wednesday (12/11), pound sterling-dollar pair has an opportunity to move in a negative trend.
The weakening of the pound sterling primarily expected soon reexamine the minimum support at 1.5850 and 1.5800 maximum. Meanwhile, if the pound sterling was able to break and hold above 1.5907, then another alternative scenario that is likely to test resistance Pounds in 1.5930 and 1.5980 area.
