Kospi Still Confident With South Korean Economy
Kospi posted a thin reinforcement after details of South Korea’s employment data kept investors remained optimistic about the outlook for the domestic economy ginseng. Although the unemployment rate rose from 3.4% to 3.5% in December, but South Korea still create enough jobs so that they can also drive economic activity. Total employment increased by 422,000 to reach 25.38 million for the current month in 2014.
This is the fourth consecutive month of increases in total employment over 400,000 limit.
However, investors appear reluctant to push up the index is too high as the widespread anxiety over the threat of global economic slowdown. The World Bank has cut its outlook for world economic growth of 3.4% to 3% in 2014. The leading institutions look weak economic outlook for the euro zone, Japan, and some developing countries would undermine the pace of the world economy even though oil prices have dropped sharply.
From the corporate sector, Hyundai Glovis shares fell nearly 7%, still burdened by reports that the Chairman and Vice Chairman of the parent company failed to sell shares of an affiliated company of Hyundai Glovis. Kospi futures rose 0.16% and is now trading at 247.85.
Technically, the index on the trading session today, Wednesday (14/01) likely to weaken, test negative trends, the impact of Wall Street. At the M15 chart formations bearish engulfing provide opportunities for the index to move downside. However, the volume tends to rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 244.10 and 242.80. If it fails at 246.70, then the next index is expected to tend to retest the resistance level of 247.50 and continued until the possibilities are in the 248.90 area.
Stimulus Outlook Back Weight the Euro
Speculation launch further stimulus from the European Central Bank made the euro to weaken against the dollar and near its lowest level nine years. The ECB is scheduled to hold a monetary policy meeting on 22 January, and is likely to release a bond purchase program after the euro zone again experienced deflation.
Eurostat on Wednesday reported the consumer price index year-on-year euro zone in December of 0.2%. Until December, inflation has been below the ECB’s target of 2.0% in 22 months, inflation began to decline in August 2012, breaks down 1.0% in October 2013, following 0.5% in July 2014, to re-experience deflation for the first time since October 2009.
ECB executive member Benoit Coeure said the ECB was “in a position to take a decision (further stimulus) on January 22”. However that does not mean we have to make a decision at that time. Meanwhile, members of the board of the ECB, the ECB’s Nowotny said Edwald should seriously respond to the threat of deflation and not defer to act.
EURUSD traded in the range of 1.1794 at 19:16 pm, away from daily highs 1.1858
Technically, the trading session today, Wednesday (14/01), the pair Euro-dollar likely to move in the negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.1725 and 1.1675 maximum. Meanwhile, if the Euro is able to break and hold above 1.1777, then the other alternative scenario that Euro chance to test resistance in 1.1825 and 1.1870 area.
Gold and Silver Prices Depressed When the US Dollar Gains
Commodity exchanges trading precious metals on Wednesday (14/1), the price of gold and silver was observed to decrease naturally with trading lower when the rebound experienced by the US dollar and equity markets.
Ongoing trade in the Asian session, gold futures for February delivery was trading lower 0:54% at $ 1.227.70 per troy ounce on the Comex division of the New York Mercantile Exchange. Gold price movements on this day was observed to reach a level of $ 1.225.40 to a session low of $ 1.234.80 level daily and daily highs for the session.
Meanwhile, silver futures for March delivery traded lower observed 1.77% at the level of $ 16,853 per troy ounce by the move hit a session low $ 16,822 to $ 17,095 level daily and daily highs for the session.
Gold and silver prices today actually still have the support due to the weakening of the US labor market conditions after the Non-farm payrolls report on Friday that immediately showed a slowdown in employment growth.
Due to the decline in performance on the US labor market, it has reinforced market expectations that the Fed will continue to delay the increase in interest rates in this region. Delay that would be the Fed on the interest rate increase, it will invite occur bullish on gold prices.
However, throughout 2014 and the price of gold has experienced a decline almost 2% amid signs the US economy experienced gradual recovery.
Meanwhile, another factor that helped push the metal prices for natural attenuation has been supported today on the strengthening of the US dollar, given the gold price movements tend to be opposite to the greenback.
In the US dollar index, which shows the performance of the greenback against a basket of six other major currencies, has gained the level of 0.02% at 92.46.
Technically, gold in today’s trading session on Wednesday (14/01) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Bands that began to widen, thus giving impetus to the gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1225.10 and re-test the maximum level of 1220.50. However, if the price of gold is able to break and hold above 1229.40, the estimated price of gold could potentially test the 1230.90 and 1232.50 resistance.
