Kospi End Down Depressed Profit-Taking Institutions
At the close of trading on the stock exchange yesterday South Korea, the Kospi index closed down -2.40 points or -0.12 percent, at 1980.10. Weakening Kospi index triggered profit taking institutional investors.
The increase in the Kospi index pushed profit-taking investors take advantage of the increase in stocks in trading yesterday.
Profit taking was also fueled by domestic economic concerns by decreasing the number of jobs. South Korea’s unemployment rate fell in April after more and more people are employed in the accommodation sector and the retail sector, but the unemployment rate for young people remains high, a South Korean government report showed yesterday.
The unemployment rate dipped to 3.9 percent in April, from 4.3 percent in March. The unemployment rate seasonally adjusted fell to 3.7 percent from 3.8 percent in the cited period, according to the report by Statistics Korea.
But the creation of employment declined from the previous month. The number of people employed reached 26.2 million last month, up 252,000 from the previous year. This is lower than the 300,000 in the previous month.
At the end of trading yesterday, shares of the giant Samsung Electronics fell 0.31 percent, leading cosmetics maker AmorePacific shares shed 2.21 percent, shares of Internet portal operator Naver retreated 1.98 percent.
Today will be released Data Export and Import Prices April Prices are expected to increase from the previous decline.
Technically,
Resistance: 242.80 243.20 243.60 High / Low: 242.70 / 242.00
Support: 241.20 241.60 242.00 Running Price: 242.40
Comment: For intraday trade today suggest Buy 242.00; stop loss at the level of 241.60; the target at the level of 243.30.
USDJPY Down As Investors Perform Profit Action
The yen rose yesterday after the Japanese currency weakened the most in two days in the three months to attract buyers even when there are still concerns that the Japanese government might intervene to weaken its currency.
The Japanese currency strengthened against all but two of the 16 major currencies yesterday, rebounded after the yen pushed to its highest level in 18 months against the dollar last week. Japanese Finance Minister Taro Aso reiterated on Tuesday that the government could intervene to stabilize the foreign exchange market if necessary. While the economic adviser of Prime Minister Shinzo Abe, Koichi Hamada said that the strengthening of the strong against the yen, which reached 100 per dollar may trigger intervention.
The yen rose by 0.63% to 108.58 per dollar, after falling by 0.9% on Tuesday. The currency touched 105.55 on May 3, it is the strongest level since October 2014, and has gained 3.5% in the current quarter. The yen weakened against the greenback during the last two sessions, it was the largest since the end of January.
Technically,
Resistance: 108.70 109.10 109.53 High / Low: 108.47 / 108.23
Support: 107.15 107.60 108.00 Running Price: 108.37
Comment: For intraday trade today suggest Sell 108.50; stop loss at the level of 108.75; the target at the level of 107.50.
Gold Rises After Dollar Rally Stalled
The price of gold rose about $ 12 per troy ounce as the US dollar weakness that sustains the appeal of gold. In addition, sentiment also turned in a slightly risk averse after the majority of global stocks weakened. There is no important economic data on Wednesday and traders assess the dollar’s weakness as a result of profit taking.
Furthermore, the weekly jobless claims data and FOMC Rosengren speech may drive the US dollar that would usually gold market responded negatively. Rosengren is regarded as dovish faction or support loose monetary policy is usually a burden on the US dollar trading. The US dollar’s rally the previous session supported by hawkish comments from FOMC Dudley influential.
The price of gold ended at the level of $ 1277.45 per troy ounce in trading yesterday, up 0.84% compared to the closing price of the previous session. Gold trading may strengthen in the short term with immediate resistance is at 1283 area while immediate support is seen at around 1267.
Technically,
Resistance: 1279.50 1281.80 1283.20 High / Low: 1278.20 / 1275.50
Support: 1274.00 1271.40 1269.10 Running Price: 1277.10
Comment: For intraday trade today suggest Sell 1280.00; stop loss at the level of 1282.50; the target at the level of 1270.00.
