Kospi Ends Weaker Impact
At the close of trading on the stock exchange yesterday South Korea, the Kospi index closed down 44.19 points, or 2.34 percent, at 1,845.45. Weakening the Kospi distressed poor performance of blue chip stocks in the South Korean stock exchange eroded by the negative sentiment weakening crude oil and a decline in global growth projections and China.
During Asian trade, West Texas Intermediate (WTI) futures down 3.37 percent at $ 27.50 per barrel, hitting below $ 28 for the first time since 2003. While the price of Brent oil futures fell 2.12 percent to $ 28 , 14 per barrel after seeing marginal gains during the session ASuntuk closed at $ 28.88.
The International Energy Agency said on Tuesday oversupply continues to put a strain on the oil market with as many as 500,000 additional barrels of oil per day from Iran.
On the day yesterday, the International Monetary Fund cut its global growth forecast for the third time in one year, this time to 3.4 percent for this year, said the government should take steps to increase demand. It said growth in China, the world’s second largest economy, will slow to 6.3 percent this year and 6 percent next year. Earlier in the day, China reported growth of 6.9 percent in 2015, from 7.3 percent in 2014.
In October, the Bank of Korea revised its growth forecast for the country’s fourth-largest economy in Asia in 2016 to 3.2 percent from 3.3 percent. BOK Governor Lee Ju-Yeol have recently expressed the need for revisions to the downside risks for the economy.
“We made that the estimates (3.2 percent growth) on the assumption that oil prices will stay at around $ 50 per barrel. But the recent decline in international oil prices sharply outside than we thought, “said Lee.
Fears of slowing global growth weighed on stocks blue chip South Korea. Samsung Electronics and Posco shares decreased respectively 2.82 percent and 4.23 percent at the close of the market.
Kepco stock browse early gains as much as 0.78 percent to close down 0.19 percent. Reports said on Tuesday that Hanul 1 South Korean nuclear power reactors automatically shut down due to technical problems. Reuters, citing the country’s nuclear reactor operator Korea Hydro & Nuclear Power, owned by Kepco, said there was no radiation leak and in stable condition.
As for the Kospi index futures tracked rose 0.40 points, or 0.18% at 224.10 positions, up from its previous close at 223.70.
Technically,
Resistance: 225.90 226.40 227.00 High / Low: 226.60 / 224.55
Support: 225.00 224.50 223.80 Running Price: 225.55
Comment: To intraday trade today suggest Buy 224.63 stop loss at the level of 224.25 at the level of the target at the level of 226.45.
Yen In The Positive Zone
The yen surged to a year peak against the US dollar on the day yesterday as the fall in crude oil prices to near 13-year lows hurt risk appetite, forcing investors reduced expectations the Federal Reserve’s interest rate hikes.
Crude oil slipped back sharply after a rebound on Tuesday, wounding sentiment in stock markets and encouraged investors to move into safe-haven assets such as the yen, Swiss franc, the German Bund and US Treasuries.
Lower oil prices and the threat of deflation has brought challenges for policy makers. Talks about the risk of recession in the US even becoming widely heard following the fall in oil prices, increasing market volatility and slowing domestic activity. Current investors expected the Fed would raise interest rates as much as 1 times in 2016.
Technically,
Resistance: 117.40 117.90 118.40 High / Low: 117.31 / 116.91
Support: 117.00 116.40 115.80 Running Price: 117.17
Comment: To intraday trade today suggest Buy 116.65 stop loss at the level of 116.35 at the level of the target at the level of 117.95.
Gold Start Weakens Sentiment
Gold fell in Asian session on Thursday (21/1). Before post of the precious metal rose nearly 2%.
Division of the New York Mercantile Exchange, spot gold for February delivery dropped -0.14% to $ 14,130 troy ounce. The precious metal fell three consecutive years in 2015, as the Federal Reserve to raise interest rates, limiting the appeal of the metal because it does not pay interest. Anxiety in the financial markets over the outlook for global growth has prompted traders to push back bets on the next interest rate hike.
With the combination of the lack of inflation in the United States and the turmoil in the stock market, holdings of gold exchange-traded products rose for the seventh time in eight sessions on Tuesday, 1,511.8 metric tons, the highest since Nov. 6, as compiled by Bloomberg data.
Weakness in the global economy is causing people to rethink the possibility the Fed will tighten monetary policy and higher interest rates. While the International Monetary Fund on Tuesday cut its global growth forecast for the third time in less than a year after China’s economy grew at the slowest rate in a quarter century in 2015.
China as it is known is the largest gold consumer in the world more than 1,000 tons per year and despite the economic slowdown will generate speculative demand for gold as a low-risk assets, analysts say it could also weigh on Asia’s physical consumption. On the other Comex trading, silver berjang for February delivery dropped -0.14% to $ 14,130 troy ounce, while copper also fell -0.03% to $ 1,981 a troy pound.
Technically,
Resistance: 1100.50 1102.50 1104.10 High / Low: 1101.90 / 1096.90
Support: 1096.90 1093.40 1091.20 Running Price: 1098.80
Comment: To intraday trade today suggest Sell at level 1100.83 1102.83 stop loss at the level of the target at the level of 1092.85.
