Hang Seng Index Recovers, Focus On Earnings
Hong Kong shares moved higher on Monday morning, as the Hang Seng index recovered from opening at a low level for rose about 0.2%.
Earnings become the focus of investors today, with shares of China Life Insurance Co. rose by 0.8%, after they reported premium income for the first two months of this year. On the other hand, the property sector focus on the Wharf Holdings Ltd., whose shares fell 2.3% after posting a 22% rise in net profit in 2014, but suffered penuunan by 7% in core earnings. Some smaller companies also showed weakness, with China’s stock Saite Group Co. fell 9.2% after cutting their year-end dividend, and chipmakers China Electronics Corp. Holdings slipped 0.5% after their earnings in 2014 fell by more than 40%.
Shares traded lower energy sector reversed the decline in international oil prices, such as PetroChina Co. and China Petroleum & Chemical Corp., or Sinopec each slumped 0.5%, and Cnooc Ltd. shares fell 0.4%. But the Chinese energy company stocks Sino Oil and Gas Holdings still maintain the trend to rally 5.7% as the company gave instructions to be profitable for the last year.
In China, the Shanghai Composite Index index rallied 0.9%, with stocks moving higher cost due to lower energy prices.
Technically, the index on the trading session today, Monday (16/03) 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 23 925 and 23 865 23990. If you fail, then the next index is expected to tend to retest the support level that is 23 825 and continued until the possibilities are in the area of 23 750.
Dollar Keep Rally Ahead of FOMC
US Dollar sustain its rally, trading near 12-year highs against the euro as investors consider the time for US interest rates are higher ahead of the Federal Reserve meeting this week.
The greenback was unchanged at $ 1.0490 per euro at 7:11 pm, after reaching its strongest level since January 2003. The dollar headed for a weekly gain of at least 0.4% against the currencies of Australia and New Zealand.
The Dollar Index was at its highest level in more than a decade because of the prospect of a rise in US interest rates has increased the attractiveness of the greenback than global peers. Central bankers from Europe to Asia has loosened its policy to trigger the expansion, the Chinese premier Li Keqiang promised in a televised speech at the end of last week to intervene if the growth rate in the country with the second largest economy in the world left behind too much.
Evan Lucas, an analyst at IG Ltd in Melbourne revealed that this has never happened before. The Fed has never found himself on the other side of the global policy and central bank policy differences have made the dollar the currency becomes the most hunted on this planet.
Technically, the trading session today, Monday (16/03), the pair Euro-dollar likely to move in the negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.0450 and 1.0400 maximum. Meanwhile, if the Euro is able to break and hold above 1.0513, then the other alternative scenario that Euro chance to test resistance in 1.0550 and 1.0610 area.
Potentially Gold Weakens Ahead of FOMC
Gold slips at the beginning of the week as investors weigh the outlook for US interest rates are higher in countries with the world’s largest economy before the Federal Reserve meeting this week.
Gold is currently down about 0.6% the range of $ 1,153.80 / onz and move dikisarn $ 1,155.85 at 8:26 pm. Precious metals finishing second weekly decline on Friday after slumping to $ 1,147.72 on March 11, it was the lowest level since Dec. 1.
The dollar surged to its highest level in more than a decade last week and funds of hedge funds are out of gold is at its fastest pace in more than four months on mounting speculation that the Fed is getting closer to Raise interest rates first time since 2006. Policy makers will meet this week, and it is important for the results of their debate whether the economy is strong enough to gain enough power to warrant revocation of appointment to the language of “patience” on the rising borrowing costs in the statement which is scheduled on March 18.
Analysts of Australia & New Zealand Banking Group Ltc say that we, and apparently the result of the survey, expect the Fed will change its guidance from a reference to “be patient”. We expect that these words will be replaced on the words that depends on the economic conditions of the country, which would give the Fed the flexibility to start Raise interest rates ranging from mid this year.
Strengthening of the labor market has increased the chance of the Fed to Raise interest rates, which has been tarnished gold’s appeal as a haven asset. Report from the Labor Department on March 6 shows employers added 295,000 workers last month, the results exceeded expectations, while the unemployment rate fell to its lowest level in almost seven years the level of 5.5%.
Technically, gold trading session today, Monday (16/03) 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 1165.10 and re-test the maximum level of 1170.87. However, if the price of gold was unable to break and stays below 1159.00 then estimated the price of gold could potentially test the 1157.78 and 1152.40 Support.
