Hang Seng Strengthened by World Oil Surge
The movement of the Hang Seng index in early trading on the stock exchange Honkong Monday morning looks rebounded from significant pressure in trade the previous weekend, which is supported by a surge in world oil prices that had reached the highest price the range of the price of $ 45.87 / barrel, despite the negative sentiment overshadowing Hang Seng index movement today. Economic data to be released by the central body Hongkong statistics on domestic retail sales data in July last, which is indicated to be still having contractions and tends to decline to 4%, from the previous release to 4.4%.
Stock amplifier Hong Kong shares this morning are shares of China Resources Power Holdings of 5.61%, shares of Lenovo Group 3.86%, shares of China Petroleum & Chemical 1.93%, shares of Kunlun Energy 1.85%, shares of China Shenhua Energy 0.74%, shares of China Mobile 1.80% China Construction Bank 0.93%, as well as Sands China shares 2:01%.
This morning the Hang Seng Index managed to record a positive performance by 180.63 points, or 0.83%, to 21793.02 points into the closing position at the end of the previous trading at 21612.39 points position and managed to record the highest increase traded the previous weekend at the position 22424.40 points but previous record low at 21585.33 points position.
However, slightly different from the movement of the index futures Hang Seng this morning, which just posted gains of 13 points or 0:07%, to be 21 453 points from the closing position at the end of the previous trading at position 21,440 points and was able to record spike highest shares traded earlier at position 22 131 points and the biggest weakness prior to 21 385 points.
Based on the results of the closure at the end of trading the stock market before, the analyst estimated that the movement of the Hang Seng Index today will likely to continue weakening traded today, to penetrate the first support at position 21 370 points with MA5 under BB10 daily, if the movement of the index broke through the first support then is expected to try to penetrate the second support at position 21 115 points with MA5 under BB10 daily.
If the movement of the index managed to turn around the direction of rebound, it is expected to try to penetrate the first resistance at position 21,700 points with MA5 on BB10 H4, if the movement of the index broke through the first resistance then expected to try to penetrate the resistance both at position 21,900 points with MA5 on BB10 H4.
Technically, the index on the trading session today, Monday (31/08) likely to weaken, tests 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 increase, an early indication of bullish index. In addition, RSI, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the first support level 21310 and 21250. If it fails at 21 377, then the next index is expected to tend to retest the resistance level 21400 and continued until the possibilities are in the 21460 area.
Dollar Under Pressure, But Above Low Level Last Week
Dollar launch this week was under pressure on Monday, is on track for monthly loss but is still above the low levels recently as investors still keep the hope that the US jobs data to be released later this week will give the Federal Reserve Raise the reasons for the fastest rates in the months ahead.
The dollar index, which tracks the greenback against six major currencies, was at 95.86, down by 0:27% from the level on Friday and fell about 1.5% for the month. But the dollar still recorded its biggest weekly gain in a month, and still above seven-month low at 92.62 reached last week when fear of China sent global equity markets had fallen sharply.
The dollar fell about 0.4% at 121.15 yen, down about 2% for the month of August, but is still above seven-month low at 116.15 touched last week.
The euro gained about 0.3% at $ 1.1225, below last week’s highs at $ 1.1715, but still up about 2% for the month.
Investors are awaiting key data non-farm payrolls on Friday for clues whether the Fed will take a step eagerly awaited by the market to Raise interest rates. Key data from the US which will be released this week include business survey, factory orders and trade data.
One market analyst in Melbourne said that the release of the ADP employment data on Wednesday and non-farm payrolls on Friday will be key in analyzing the possibility of a rate hike in September.
Fed Vice Chairman Stanley Fischer said in his speech at the meeting of central bankers in Jackson Hole, Wyoming on Saturday that US inflation is likely to rebound when the pressure against the dollar fades, it allows the Federal Reserve to Raise interest rates gradually.
Technically, today’s trading session on Monday (31/08), the pair Euro-dollar likely to move in a positive trend.
The strengthening Euro is mainly expected to immediately re-examine the minimal resistance at 1.1280 and maximum 1.1340. Meanwhile, if the Euro unable to break and stays below 1.1238 then the other alternative scenario that Euro likely to test support in 1.1200 area and 1.1150.
Gold Prices Start Recovered
Volatility of gold continues to recover, the indicator and the US central bank is still hakwish against the decision to raise interest rates in the months ahead.
Division of the New York Mercantile Exchange, spot gold was up 0.8 percent at $ US1, 134.26 per. Gains came as Federal Reserve officials that suggested the central bank may delay tightening monetary policy next month because there is still instability in the financial markets. Increases in interest rates will dim the appeal of non-interest bearing assets such as gold.
Nonetheless, bullion still plunged 2.3 percent last week, the index of US consumer spending also observed improved, followed by the US economic growth in the second quarter to 3.7 percent from an initial estimate of 2.3 percent.
But according to one bank Saxo bank manager, the big question for this week is whether the anxiety that occurs in the market when August 11 China devalued its currency will continue. Weak gold prices failed to boost physical demand in Asia, with premiums in India are slipping.
While on the other the Comex trading, palladium rose sharply 4.6 per cent to $ US585 per ounce, spot silver was up 0.6 per cent at $ US14.56 an ounce, platinum was up 1.5 percent at $ US1, 016.50 an ounce.
Technically, gold on the trading session today, Monday (31/08) the potential reversal, testing positive trend, but prone to profit taking. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Band begins to shrink, thereby giving impetus for gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1138.25 and re-test the maximum level of 1143.50. But if the gold price could not break and stays below 1133.90 then predicted gold prices could potentially test the Support 1130.80 and 1125.50.
