Hang Seng Attenuated On China Outlook
At the close of trading beginning of last week, the Hang Seng index in Hong Kong Stock Exchange closed down -162.60 points, or -0.76 percent, at 21304.44. The weakening of the Hang Seng index eroded by the weakening of oil prices and worries the Chinese economy.
Crude oil prices fell in Asian trade yesterday pressured traders took profits after a three week run of gains and as a spike in the US dollar last week weighed on prices.
US crude oil futures price of West Texas Intermediate (WTI) fell by about half a dollar, or 1.2 percent, at $ 43.22 per barrel.
While the price of international benchmark crude oil futures for Brent front-month contract traded at $ 44.66 a barrel at 0043 GMT, down 45 cents, or 1 percent, from their last position.
The weakening of the Hang Seng index also stressed China’s economic worries.
Standard & Poor’s and Moody’s Investors Service cut its forecast for China’s long-term credit rating to negative last month, citing a surge in the country’s debt burden and worries that governments will not be able to implement reforms.
China’s new credit increased by 4.6 trillion yuan ($ 712 billion) in the first quarter, exceeding the level of depth during the global financial crisis of 2009. Total debt of corporations, governments and households is 247 per cent of gross domestic product last year, up from 164 percent in 2008, according to data compiled by Bloomberg.
Step regulator to cool the commodity trading volatility recently, with China’s three futures exchanges announced on Thursday that it will increase transaction costs, also weighed on the Chinese economy.
At the end of trading yesterday, shares fell highest stock Hengan International Group Co Ltd fell -2.82%, shares of China Resources Power Holdings Co. Ltd. fell -2.54%, shares of Li & Fung Ltd fell -2.21% , shares of Tencent Holdings Ltd. fell -1.78%, shares of China Shenhua Energy Co Ltd fell -1.51%.
While the movement of the Hang Seng index futures fell -195.00 points or -0.91% at 21,286.00, down from the previous closing at 21,481.00.
Technically,
Resistance: 21350 21450 21 520 Prev. High / Low: 21449/21266
Support: 21225 21180 21060 Closed Price: 21290
Comment: For intraday trade today suggest Buy at the level of 21200 stop loss at the level of 21150 targets at the level of 21480.
Aussie Try Strengthening Against US Dollar
Forex news on Tuesday (26/4), the Aussie dollar was observed to continue strengthening against the US dollar as the greenback demand decreased due to market sentiment was seen in anticipation of the results of the FOMC meeting this week.
Ongoing trade in the Asian session, AUDUSD observed a 0.01% rise to trade at 0.7714. The range of the daily movement of the pair looks to have moved touched a low of 0.7712 and highs at 0.7723. Elsewhere, the US dollar index which shows the performance of the greenback against a basket of six other major currencies tracked down a 0.01% at the 94.73 level.
The low growth of inflation still looming US economy in recent past has convinced the market that the Fed will hike interest rates again postpone them. Despite the magnitude of these beliefs, but the attitude of anticipation of market participants are seen running from the beginning of this week.
Meanwhile, the lack of fundamental economic reports this morning likely to impact market movements were calmer. But when you sign up to the US European trading opened, the market will be faced with a series of world economic events.
United States is scheduled to release data on durable goods orders are expected an increase of 1.8% for the period of February and March. Furthermore, the services activity report and US consumer confidence is also expected to provide movement of the market turmoil.
Technically,
Resistance: 0.7750 0.7790 0.7840 High / Low: 0.7721 / 0.7711
Support: 0.7700 0.7650 0.7590 Running Price: 0.7714
Comment: For intraday trade today suggest Buy at the level of 0.7650 stop loss at the level of 0.7615 targets at the level of 0.7748.
Gold Rebounds Ahead of Central Bank Meetings
Gold turned to close higher at the beginning of this week, after being hit by a massive selloff at the end of last week, as traders shifted focus to a policy meeting two major central bank that will probably determine the direction of movement of the dollar and precious metals in the short term.
Central bank meeting will likely be the main driver of currency and precious metals in this week’s trading. The Bank of Japan is scheduled to announce its latest policy decision on Thursday, a day after the Federal Reserve completed the two day meeting.
Bullion also gained support from a weaker global stocks, greenback and crude oil prices after a surprise decline in US new home sales figures add to investor uncertainty over the outlook for the world economy.
Technically,
Resistance: 1239.10 1241.60 1243.60 High / Low: 1238.50 / 1236.50
Support: 1233.70 1231.00 1229.10 Running Price: 1237.10
Comment: For intraday trade today suggest Buy at the level of 1232.50 stop loss at the level of 1230.00 the target at the level of 1242.50.
