The Hang Seng Index Fluctuation in Central Reports Mixed Earnings
Hong Kong stocks are flat with the strengthening and weakening of small, take a hint from the weakening of the US market and the diversity of corporate earnings reports.
The Hang Seng Index erased losses in the opening hours of trading with rose less than 0.1%, with China’s stock index which follows the Hang Seng China Enterprises Index fell 0.3%.
Shares of Bank of China Ltd. fell 0.7%, due to their non-performing loans jumped more than 30% in the last year and the ratio of bad loans rose to 1.18% from 0.96% a year ago, although they posted a profit increase of 8%. Most banking stocks also fell, with shares of China Merchants Bank Co., which fell 1%, shares of China Minsheng Banking Corp which fell 0.7%, China Citic Bank Corp. shares were down 0.9% and shares of China Construction Bank Corp which fell 0.5%. Shares of Chinese aluminum producer, namely Aluminum Corporation of China Ltd., known as Chalco fell by 1.1% after the company said that they had a loss of 16 billion yuan ($ 2.6 billion) last year. Other mining companies also recorded a sustained losses, such as stocks Jiangxi Copper Co. and Xingye Copper International Group Ltd, each of which fell 1.6%, Shares Zijijn Western Mining Co. traded down 0.5%.
In China, the Shanghai composite index rebounded by 0.2%.
Technically, the index on the trading session today, Thursday (26/03) 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 24 635 and 24 584 24690. If you fail, then the next index is expected to tend to retest the support level that is 24 525 and continued until the possibility of being in the 24450 area.
Dollar Moves Close to $ 1.10 Vs. Euro After the Bad Data
The US dollar traded near $ 1.10 per euro as encouraging economic data disappoint investors to adjust their outlook after last week’s Federal Reserve meeting.
US economic reports on Wednesday showed that bookings for durable goods fell in February, dampening demand for the currency further after slipping to its lowest level in more than three years as the Federal Open Market Committee cut the outlook for interest rates, inflation and economic growth in the future next. The index is expected to fluctuate after jumping over the last week.
Dollar moves vulnerable to economic data are surprising, and posted a decline that may still survive, “said Mark McCormick, currency strategist at Credit Agricloe SA in New York.
The dollar was little changed at $ 1.10975 per euro at 8:10 pm, after falling by 0.4% on Wednesday. The dollar was little changed at 119.30 after falling 0.2% in New York. The euro traded at 130.97 yen from 131.08.
Technically, today’s trading session on Thursday (26/03), the pair Euro-dollar likely to move in a positive trend.
The strengthening of the Euro mainly expected soon reexamine the minimum resistance at 1.1025 and 1.1080 maximum. Meanwhile, if the Euro was unable to break and stays below 1.0976 then another alternative scenario that Euro chance to test support in 1.0925 and 1.0880 area.
Powered rise in Euro-Dollar, Gold Prices Continue Rally
The price of gold back end to trade early this morning by posting impressive gains (26/3). Precious metal prices also continued its rally in the morning trading session in Asia today. Yesterday the price had reached its highest position since March 6.
Spot gold prices rose to the highest level in almost three weeks later. This commodity prices led to record the longest phase of the increase since January last year. Investors returned to seek refuge in gold instrument during the past few days in the middle of the drop in the dollar exchange rate.
In addition to US economic data are less impressive, the weakening dollar last night was also caused by the euro gained momentum. Improving economic data from the Germans to provide support for a single currency Eurozone to strengthen against the US dollar. German business climate has increased. This condition raises expectations that the Eurozone economy is undergoing restoration.
Spot gold prices in late trading Thursday morning closed at 1195.10 dollars per troy ounce. Prices increased slightly only by 2.15 dollars or 0.1 percent compared to the previous closing in the level of 1192.95 dollars per troy ounce. Today the price of gold is still continuing and the rise in the level of 1196.65 dollars.
Meanwhile Comex gold futures prices for April contract also observed an increase of 5.60 dollars, or 0.5 percent. The commodity price closed at 1197.00 dollars per troy ounce.
Analyst estimates that the spot gold price movements today LLG will again increased although it will tend to be limited. In early trading this morning the price of gold has been observed to forward a little.
In this day trading price of gold could potentially test the resistance level at position 1200 dollars per troy ounce. If successfully penetrated the price will continue to rise again to the position in 1220 dollars. Meanwhile, if there is movement which turned lower price will test the support level at the position in 1180 dollars. If successfully penetrated the price will continue weakening to the position in 1170 dollars.
Technically, gold trading session today, Thursday (26/03) 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 1201.10 and re-test the maximum level of 1205.87. However, if the price of gold was unable to break and stays below 1198.70 then estimated the price of gold could potentially test the 1195.78 and 1190.40 Support.
