Hang Seng China Manufacturing Data Fluctuation Post
Stock Exchange of Hong Kong, the Hang Seng, fluctuate between strengthening and weakening after the release of Chinese manufacturing activity of the data. The market is now waiting for the financial secretary, John Tsang, announced the budget for fiscal year 2015-2016.
Preliminary data from HSBC showed China’s manufacturing activity index of 50.1, from January amounted to 49.7. The release at the same time break the estimated decline to 49.6 by economists. A reading above 50 indicates expansion, while below 50 indicates contraction. Although noting the expansion, but the chief economist Qu Hongbin said HSBC China’s domestic demand is still low, and demand from abroad is still uncertain.
From the trading floor, HSBC rebounded 0.9% after slumping 3.5% on Tuesday. Bank of Communications Co. and China Mobile Ltd. each rose 0.5% and 0.4%. While shares of Cheung Kong Holdings Ltd. and Hutchison Whampoa Ltd. suspended from trading because of a meeting of shareholders for a vote the company’s restructuring plan.
The main Hang Seng Index is currently flat the range 24749.10. While the Hang Seng Futures traded the range of 24750 at 9:58 pm, with daily lows and highs 24 684 24 884 (\
Technically, the index on the trading session today, Wednesday (2/25) 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 24 860 and 24925. If it fails in 24800, we then estimated the index tends to retest the support level of 24750 and continued until the possibility of being in the 24700 area.
Sterling Slips After Inflation Report
Sterling slipped versus the US dollar on Tuesday despite the Bank of England policy makers signaled will ignore inflation slowdown period and start raising interest rates sooner than expected.
Through Inflation Report, Governor Mark Carney told MPs that the projection shows the inflation rate will fall below zero in the next few months, largely driven by energy and food prices. But Carney pledged to restore growth to the price of the 2% target within a reasonable period.
While other policy makers, Martin Weale, said that if the benchmark interest rate is likely to rise earlier than market expectations.
“The key factor here is that the Bank of England may be more focused on the outlook for inflation two years ahead,” said Steven Saywell, global head of foreign exchange strategy at BNP Paribas SA in London. “The pound is still going to remain very strong, especially against the Euro.”
Technically, today’s trading session on Wednesday (02/25), pound sterling-dollar pair likely to move in a positive trend.
The strengthening of the pound sterling primarily expected soon reexamine the minimum resistance at 1.5525 and 1.5575 maximum. Meanwhile, if the Pound was unable to break and stays below 1.5476 then another alternative scenario that Pound chance to test support in 1.5450 and 1.5400 area.
Yellen Testimonials Restore Gold
Gold tumbled to a low level of 7 weeks on Tuesday but then cut declines following the Federal Reserve Governor Janet Yellen said that the central bank prepared to consider a rate hike in the “meeting by meeting basis.
“Yellen said the Fed’s policy committee is likely to first remove the word” patient “in describing his approach to rising interest rates, and then entered a phase where possible rise in interest rates at the meeting.”
“The negative effect is initially a change in emphasis. Where the latest statement from the Fed showed a lot of officials worried about rising interest rates are too fast, Yellen seems mnempatkan framework for interest rate hikes, at least in the first part of his testimony,” said Peter Buchanan , senior economist at CIBC World Markets in Toronto. Investors are bullish on gold seems to welcome the affirmation of Yellen that rising interest rates can be more than 2 meeting again, said Buchanan. Eurozone add as much as 7437 tons of gold holdings in January, according to data from the International Monetary Fund on Tuesday. According to traders, the increase is due to the merger of Lithuania, while holdings of gold fell as much as 14 227 tonnes Turkey.
Technically, gold in today’s trading session on Wednesday (02/25) 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 1205.33 and re-test the maximum level of 1200.73. However, if the price of gold is able to break and hold above 1209.10, the estimated price of gold could potentially test the 1211.40 and 1215.72 resistance.
