Positive Performance Hang Seng Skyrocketing 400 pts
At the end of trading on the Stock Exchange of Hong Kong Monday hangs zinc benchmark index recorded a significant increase. The jump in the increase in the Hong Kong stock exchange is based on the positive sentiment in Asian trade coloring Monday.
Benchmark interest rate cuts, which are surprisingly made by China’s central bank gives a boost gains in Asian stock markets, especially the Shanghai stock exchange. PBOC cut the benchmark interest rate for the first time in more than two years to boost the economy that is being cooled. The central bank cut interest rates by 40 bps to 5.6 percent. Year benchmark deposit rate was also lowered by 25 bps. The benchmark interest rate became effective on 22 November.
Leading stocks in Hong Kong appears to have increased significantly. Cheung Kong rose by 4.90 hkd be 143.00 hkd. Wharf Holdings increased by 0.90 hkd be 56.05 hkd. HSBC posted an increase of 0.60 hkd be 77.10 hkd.
Index hangs zinc spot in the close of trading this afternoon posted a significant increase. The spot index ended with a sharp rise of 456.02 points or 1.95 percent and stood at 23893.14 points.
Analyst estimates that on Tuesday’s trading Stock Exchange of Hong Kong will have movement influenced by the performance of the stock market the United States and Europe. Data are awaited Monday is a business climate index in Germany and Belgium as well as the Flash Services PMI from the United States.
The movement of the index hangs zinc for Tuesday’s trading is likely to tend to consolidate after sharp gains on Monday. Despite this potential further rise is still open because it is supported by solid fundamentals. The resistance will be encountered at 24100 and 24200. Meanwhile the resistance level will be obtained in the 23700 and 23600.
Technically, the index on the trading session today, Tuesday (25/11) is likely to strengthen, test positive trend. At the M15 chart bullish hammer formation provides opportunities for the index to move upside. However, the volume of which is likely to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first resistance level of 23 950 and 23 903 24000. If you fail, then the next index is expected to tend to retest the support level that is 23 870 and proceed to the possibility of being in the 23820 area.
Yen Still Can Down Until End of Year
Yen still down nearly seven years against the dollar on Tuesday (25/11). Triggered from the Bank of Japan that add monetary stimulus makes a low demand for haven assets for Japan.
USDJPY gained a 0.12% to a level of 118.41, 118.25 support level to consolidate the low and high resistance level 118.57.
The yen depreciated 0.4 percent against the dollar to 118.27 at 5 pm in New York, touch 118.98 on November 20, where the weakest level since August 2007. Down 0.8 percent to 147.15 yen per euro. A weaker yen will continue to fall and it could be interesting macroeconomic story.
Semnetara of the ECB to discuss further steps to support the economy, after reducing the rate to positions and announced a program to purchase program covered bonds and asset-backed securities. China joined to Europe in reducing monetary policy last week, and it surprised markets by cutting the interest rate cut since 2012.
Yen will very likely weaken towards 125 against the dollar by the end of next year, even before the next year, due to a combination of further BOJ and US monetary policy normal.
Technically, the trading session today, Tuesday (25/11), the pair Euro-dollar likely to move in the negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 115.50 and 113.00 maximum. Meanwhile, if the Euro is able to break and hold above 117.88, then the other alternative scenario that Euro chance to test resistance in 118.50 and 120.00 area.
Trimming China Sustain Interest Rates Gold
Gold weighed down on Monday, as the strengthening of the dollar, but the price of gold is still close to the 3-week highs after a surprise rate cut in China strengthens hope for gold demand in China will increase.
China cut interest rates on Friday, in an effort to shore up the country’s second largest economy of the world, and may even have been prepared to again cut interest rates, according to sources.
Meanwhile, the dollar was trading in the range of 4-year highs against a basket of major currencies.
“Level 3-week high hit on Friday only temporary dismissal bearish trend. Speculators have returned to the market, but the overall outlook remains unchanged,” said Georgette Boele analyst at ABN Amro.
“We still expect US interest rates will rise next year and probably faster than anticipated market today, It will suppress the price of gold.”
Technically, gold trading session today, Tuesday (25/11) the potential reversal, tested positive trend, but prone to taking profit. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Bands that began to shrink, thus giving impetus to the gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1200.10 and re-test the maximum level of 1205.87. However, if the price of gold was unable to break and stays below 1197.80 then estimated the price of gold could potentially test the 1195.00 and 1190.40 Support.
