Hang Seng Index Extend Rally
Stock Exchange of Hong Kong and Shanghai extend their rally on Wednesday morning after an overnight rally in US stocks reversed a surge in oil prices.
The Hang Seng Index this morning rose about 1% at 24 781, while the Shanghai index rallied 0.5% at 3,223.64 at 9:28 pm.
In Hong Kong, energy stocks broadly rose despite oil price away from its highest level during the Asian trading session. Shares of Cnooc Ltd. jumped by 5.1%, shares PetroChinaCo. shares rose 2.3% and Kunlun Energy Co. and China Petroleum & Chemical Corp. (Sinopec) each rose 1.8%. Shares of China Oilfield Services Ltd. also soared 2.9%.
However, rising oil prices, in addition to a positive impact on energy companies, it was also given a negative impact on some stocks transportation primarily for company operators, such as China Eastern Airlines Corp. shares were down by 1.9%, shares of China Southern Airlines Co. down 1.1% and shares of Cathay Pacific Airways Ltd. down 0.9%.
Meanwhile shares in the banking sector heavyweight verdant in Hong Kong trading this morning was HSBC Holdings PLC rose 1.1% and Standard Chartered shares rose 4%. Shares of Hang Seng Bank Ltd. jumped by 4.3% after a report that said that they consider the remedy to sell 10.9% of their ownership shares to the Industrial Bank Co.
Technically, the index on the trading session today, Wednesday (04/02) likely to weaken, test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides 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 24 630 and 24 686 24560. If you fail, then the next index is expected to tend to retest the resistance level that is 24 710 and continued until the possibilities are in the area of 24 760.
Maintain Euro Rally For Optimism Greece
The euro is still moving at a high level after jumping about 1.2% on Tuesday as the Greek government said that they withdrew from the debt relief request, the increasing optimism that the region will not face the current crisis.
Currency of 19 European countries rose against most major currencies during yesterday after Greece’s finance minister Yanis Varoufaksi beberpa outlined plans to extend the Greek debt held by the European Central Bank and the European Stability Facility for different securities.
Nick Bennenbroek, chief currency strategist at Wells Fargo in New York said that the tone of the comments on both of Greek politicians and leaders of the euro area to be a bit more fun and reduce confrontation. This is the most that moved the market, which inspired movements technically.
This morning the euro traded at $ 1.1465 in the range of 08.30 pm from $ 1.1481 in New York session yesterday, when it suffered its biggest daily rally since October 15. Major currency was little changed at 134.92 yen. The dollar bought 117.90 yen.
Technically, the trading session today, Wednesday (04/02), the pair Euro-dollar likely to move in the negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.1410 and 1.1310 maximum. Meanwhile, if the Euro is able to break and hold above 1.1463, then the other alternative scenario that Euro chance to test resistance in 1.1480 and 1.1525 area.
Gold Struggling To Recover Amid Optimism Against Greece
Gold moves stable but failed to rebound on Wednesday after a free fall more than 1% in the previous session as Greece plans to end the impasse with the creditors who have increased the demand for risky assets such as equities.
Spot gold prices this morning just a slight change in the range of $ 1.1260 at 8:55 pm, after on Tuesday fell by 1.2%. It marks the decline of gold in four of the five sessions.
Greece’s new government seems to be softened on foreign debt and proposes to end the impasse with the official creditors to extend the debt for bonds associated with growth.
SPDR Gold Trust, the biggest exchange traded gold, said that the amount of investment holdings fell to 24.59 million onz on Tuesday from 24.65 million onz on the previous day, which was the highest level since October.
Technically, gold in today’s trading session on Wednesday (04/02) 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 1255.33 and re-test the maximum level of 1250.73. However, if the price of gold is able to break and hold above 1261.10, the estimated price of gold could potentially test the 1263.40 and 1265.72 resistance.
