The Hang Seng Index Dips
At the close of trading yesterday, the Hang Seng index in Hong Kong Stock Exchange closed negative -9.06 points or -0.04% at 22,488.94. The Hang Seng Index entered negative territory in afternoon trading after rallying as much as 1 percent earlier amid reports that track the stock market Shenzhen-Hong Kong can be launched in the second quarter of next year.
At the close of trading yesterday, shares of the Hang Seng index weights are shares of Cathay Pacific Airways Ltd. fell -2.47%, shares of China Mengniu Dairy Co Ltd which fell -2.30%, shares of Lenovo Group Ltd. were down – 2.20%, Swire Pacific Ltd which fell -1.20%, Sands China Ltd. shares were down -0.93%.
While the Hang Seng index futures movement experienced positive results, edged up by 12 points or 0.05% at 22 506 from the closing position at the end of the previous stock exchange trading on 22 494 positions.
On the next trading day this Friday, will be influenced by Hong Kong’s economic data releases will be announced after closing of the stock exchange this afternoon that the Balance of Trade in October indicated by the consensus of economists will increase at the position H $ -35.2 billion from the previous H $ -36.4 billion.
There will also be a data Exports (YoY) in October, indicated by the consensus of economists will increase at the position -3.8% from the previous -4.6%.
While Data Imports (YoY) in October indicated by the consensus of economists will increase at the position -7.1% from the previous -7.6%.
Technically, the index on the trading session today, Friday (27/11) likely to strengthen, test positive trend. At the M15 chart bullish hammer formation to provide opportunities for the index to move upside. However, the volume tends to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the first resistance level of 22600 and 22660. If it fails at 22525, then the next index is expected to tend to retest the support level that is 22 475 and is likely to be continued until the 22400 area.
Sterling Potentially Weakens
Sterling weakened significantly against the dollar the previous day and is near the lowest level in seven months. Decline in the value of the exchange rate on the trade tend deserted her off as a result of the US market, giving an indication of sterling is still overshadowed by the negative sentiment, mainly due to the withdrawal of expected rate hike in the UK.
The weakening of sterling likely to continue if the gross domestic product (GDP) UK release lower than expected. Office for National Statistics today will release data on third quarter GDP second estimate is expected to grow by 0.5%, or the same as the first estimate.
Earlier in the beginning of this week, Chief Economist of the Bank of England (BoE), Andy Haldane, said the pace of economic growth and inflation may be slowing. In its quarterly inflation report, the BOE also provide an indication in no hurry to raise interest rates, which makes sterling continued to weaken against the dollar.
Technically, the trading session today, Friday (27/11), pound sterling-dollar pair has an opportunity to move in a negative trend.
The weakening of the pound sterling mainly expected soon reexamine the minimum support at 1.5040 and maximum 1.4980. Meanwhile, if the pound sterling was able to break and hold above 1.5101, then the other alternative scenario that is Pound chance to test resistance in 1.5140 and 1.5190 area.
Gold Prices Down In Thin Trade
The price of gold at the close of trade on Friday before dawn (27/11) closed down, was at its lowest level in six years at a pressure of a strengthening dollar with strong economic data raised expectations of interest rate hikes from the US Federal Reserve next month.
On Friday morning trading liquidity is thin, with US markets closed for the Thanksgiving holiday.
“Pain in the market is that the dollar will continue to rally because the prospects for QE (quantitative easing) in Europe and the rise in the US,” head of commodity strategy at Saxo Bank, Ole Hansen said.
The dollar rose 0.1 percent against a basket of major currencies, traded near an eight-month highs reached in the previous session.
“The dollar index is in the high range in the annual rate at 100.39. A break of this level will provide downward pressure on gold, “said ScotiaMocatta in a note.
Data on Wednesday showed US manufacturing output in October rose well above economists’ expectations while business spending plans rose.
Spot gold prices fell 0 LLG unchanged, at at 1,070.76 dollars per troy ounce at 1505 GMT, not far from last week at 1,064.95 dollars per troy ounce, the lowest since February 2010.
Gold has seen some safe-haven bid earlier this week after a Turkish fighter jet shot down a Russian, sparked tensions between the countries, but the sentiment rise in US interest rates has eclipsed the offer, and investor focus back to US interest rate hikes.
On the physical market, buying interest increased as gold prices stay close to the old lows annual rate.
Premiums in the Shanghai Gold Exchange, China’s consumer demand, traded at an increasing rate $ 5- $ 6 per ounce on Thursday, compared to $ 3- $ 4 per ounce at the beginning of the month.
Chinese net gold imports from Hong Kong’s main channel fell in October from the highest 10-month high reached in the previous month, data showed on Thursday.
Third quarter gold purchases in India, the largest consumer in the world, is likely to fall to its lowest level in eight years, depressed by poor investment demand and a drought that has reduced income for millions of farmers.
Silver prices meanwhile rose 0.6 percent to $ 14.24 per ounce. Platinum rose 1.6 percent to $ 852 after reaching a seven-year lows in the previous session, while palladium rose 0.9 percent to $ 559.
Technically, gold on the trading session today, Friday (27/11) 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 1077.50 and re-test the maximum level of 1082.10. But if the gold price could not break and stays below 1072.40 then predicted gold prices could potentially test the Support 1070.78 and 1065.40.
