Hang Seng Index Closed Decrease
At the close of trading yesterday, the Hang Seng index in Hong Kong Stock Exchange closed down -62.68 points, or -0.28 percent, at 22,417.01. The weakening of the Hong Kong Stock depressed decline in business activity in Hong Kong.
Yesterday released economic indicators namely Nikkei Hong Kong PMI in November, which posted results of 46.6, the same as the previous results in 46.6. This result indicates the number is still below the 50 standard.
This is unchanged from the reading in October and signaled a further decline in the economic health of Hong Kong’s private sector, according to Nikkei / Markit, which are arranged in order to measure the monthly indicator for the performance of sectors including manufacturing, services, construction and retail.
Statistics released earlier this week showed that the total value of retail sales in Hong Kong has dropped eight consecutive months, while the number of tourists dropped for five consecutive months.
As for stocks that become ballast Hang Seng is the share of Henderson Land Development Co Ltd which fell -2.04%, shares of China Unicom Hong Kong Ltd fell -1.65%, shares of China Petroleum & Chemical Corp. fell -1.63% , Swire Pacific Ltd. fell -1.49%, shares of China Resources Power Holdings Co. Ltd. fell -1.29%.
Meanwhile movement observed Hang Seng index futures rose 48 points or 0.21% at 22,465.00, up from the previous closing at 22,417.00.
On Friday’s trading, there are no data released economic indicators. Need to continue to be considered the development of global stock markets and commodity prices, as well as domestic economic development and China.
Technically, the index on the trading session today, Friday (04/12) 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 22480 and 22550. If it fails at 22 416, then the next index is expected to tend to retest the support level that is 22 550 and is likely to be continued until the 22500 area.
Euro Gets Surprise
Still grim manufacturing industry in the US did not make the service sector helped plummeted. Although got a little correction in November, but in the mean still in expansionary shades. Euro unexpectedly abandoned the seller due to negative sentiment from the central bank. As a result, the Euro rallied quickly.
Still water runs deep, perhaps it is a condition that occurs in the service sector in the US. Different from his siblings, namely design engineering sector (manufacturing) who was panting trying to get up, indicators that emerged from purchasing managers in the services sector companies are still moving according positive trend. Indeed, for the month of November there is a slight correction, but for some observers see this condition is not a concern that is worrying because it is still in the benchmark index expansive.
With a record high since 2008 was recorded at 60.3 index number in the middle of this year, the period of November was only able to survive in the range 55.9. This was revealed based on a survey of an independent agency called ISM. Confirmation will still solid services sector also embodied by institutions other polls that Markit by releasing the results of the survey Area index 56.1. While in the previous period had briefly surged to 56.5 range.
As a super power countries, the US has undergone a transformation in terms of its economy by relying on the services sector rather than engineering sector. So that the services sector is almost certainly now has the largest share as the driving wheel of the domestic economy. With nearly eighty percent of the labor market are absorbed in the service industry monitoring service sector survey is going to be an interesting benchmark for the US central bank officials.
European central banks sends a disappointing signal to the market. The value of an asset expenditures are expected to be a stimulus for the rise in Europe’s economic engine. Through the speech of one brass, they have made the market players chasing Euro and immediately throws the Greenback. This necessarily makes chaotic market situation. The euro was last up price limit 1.0525 late however the header of the bull market have made the single currency this Blue Continent warpage in the range of 1.0850’s.
Technically, the trading session today, Friday (04/12), the pair Euro-dollar likely to move in a negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.0850 and maximum 1.0800. Meanwhile, if the Euro is able to break and hold above 1.0917, then another alternative scenario the Euro a chance to test the resistance at 1.0950 and 1.1010 area.
Gold Still Vulnerable and Potentially Back Weakens
The decline of the dollar makes gold had gained the previous day, but many analysts warned the strengthening of gold is likely only for a moment due to a potential increase in interest rates by the Federal Reserve this month. Based FedWatch of CME, the probability of a rate hike in December was above 75%, which makes gold approaching a six-year lows on Wednesday.
Dollar hit by euro rallied after latest stimulus from the European Central Bank is still below the expectations of investors. The dollar index fell to its lowest level of the month, and utilized by the gold to rebound.
Data on non-farm payrolls (NFP) this Friday will be the main focus to see the clarity of monetary policy of the Fed. Previous Wednesday report from Automatic Data Processing (ADP) showed the addition of US private sector employment as much as 217,000 throughout November, higher than economists’ estimates of 191,000. Semenatara on Thursday, the US Labor Department reported initial claims for unemployment benefits rose 9,000 last week from 260,000 the previous week. These data still showed the toughness of the US labor market, and could be an indication of a good NFP data.
Technically, gold on the trading session today, Friday (01/10) 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 1068.50 and re-test the maximum level of 1073.87. But if the gold price could not break and stays below 1063.20 then predicted gold prices could potentially test the Support 1060.78 and 1055.40.
