Hang Seng Close Higher
The Hang Seng Index Ends Week Up 3%, but monthly sales drop 10%
The Hang Seng index in Hong Kong recorded a positive result on a weekly basis later this month, up 3.1%, but on a monthly basis fell -10.1%.
In the last week, the Hang Seng Index posted positive results in four trading sessions, only one session down by weaker crude oil prices and the decline in the Chinese stock exchange. Factors that strengthen the Hong Kong stock exchange last week was the increase in crude oil prices, the strengthening of Wall Street and Beijing and BOJ stimulus expectations.
If you look at Hong Kong this month, much influenced by external sentiment, both from China, also the movement of Wall Street, the price of crude oil, and also hope a good stimulus from the Fed, China and also the BOJ. If these factors are negative, will menakan, but if positive will lift the Hang Seng index.
But that also suppress the movement of the Hang Seng Index this month is a drop in the currency of Hong Kong Dollar. As in trading Wednesday, the Hang Seng index tumbled nearly 4% depressed concerns capital outflows and the future of Hong Kong dollar triggered a wave of selling on Wednesday, forcing the Hong Kong dollar fell to its lowest intraday level since 1999. In the currency markets, the dollar spot rate Hong Kong fell to 7.8241, the weakest since August 2007 when the US subprime crisis occurred.
Technically,
Resistance: 19770 19850 20010 Prev. High / Low: 19737/19031
Support: Closed 19500 19700 19630 Price: 19 723
Comment: To intraday trade today suggest Buy at the level of 19600 stop loss at the level of 19550 targets at the level of 19910.
Euro Moves Mixed
The euro moved lower against the US dollar on Friday, after the release of mixed economic reports that the results of the Euro zone.
Data on Friday showed that the annual rate of inflation for the euro zone rose 0.4% in January, in line with analysts’ expectations and after rising 0.2% in December.
European Central Bank (ECB) annual inflation targets were near or slightly below 2%.
Core inflation, which excludes food and fuel, rose 1.0% in January, beating forecasts for a 0.9% rise and following a 0.9% rise.
Earlier on Friday, data showed German retail sales fell 0.2% in December, compared with expectations for a 0.5% rise and following a revised increase in the previous month to 0.4%.
The report showed that gross domestic growth in Spain grew 0.8% in the fourth quarter, was in line with expectations.
Technically,
Resistance: 1.0880 1.0930 1.0980 Prev. High / Low: 1.0833 / 1.0814
Support: 1.0800 1.0755 1.0700 Running Price: 1.0832
Comment: To intraday trade today suggest Buy at the level of 1.0800 stop loss at the level of 1.0764 the target at the level of 1.0898.
Gold Rose 5%
Gold prices rose higher in trading on weekend early Saturday (30/01) after data showed US economic growth slowed in the fourth quarter.
The increase in precious metals brought an increase of more than 5 percent in January, triggered by concerns over the outlook for global growth, especially China, which has been aggravating the rate of the next rate hike in the United States.
Spot gold prices rose 0.2 percent at $ 1,116.46 per ounce, while US gold futures for February delivery closed up 0.1 percent at $ 1,116.40 per ounce.
Global stock markets surged and the yen slipped after the Bank of Japan surprised markets by adopting a negative interest rates, while expectations the US Federal Reserve will slow the pace of interest rate hikes in the future also support gains and support the gold price.
“The probability of a Fed rate hike in March is less than 20 percent,” said George Gero, precious metals strategist for RBC Capital Markets in New York.
Gold prices hit a 12-week low of $ 1,127.80 on Wednesday, after the Federal Reserve said it is closely watching the global economic and financial markets. This supports the view that US policy makers may not be able to raise interest rates soon in March.
The market largely ignored comments by Dallas Fed President Robert Kaplan, who said the Fed will be patient about policy decisions.
The dollar’s gains accelerated after the release of US gross domestic product report, which is in line with economists’ expectations, but showed a decrease.
Meanwhile, spot silver prices up 0.01 percent at $ 14.28 per ounce. Platinum prices rose 0.03 percent to $ 870.70 per ounce, while palladium prices rose 0.5 percent to $ 498.50 per ounce.
Technically,
Resistance: 1119.10 1121.60 1123.60 High / Low: 1119.00 / 1115.00
Support: 1115.70 1112.00 1109.40 Running Price: 1117.80
Comment: To intraday trade today suggest Buy 1112.80 stop loss at the level of 1110.30 the target at the level of 1122.80.
