Hang Seng Rise Following Shanghai Stock Exchange
The Hang Seng index in Hong Kong Stock Exchange closed up 52.62 points, or 0.26 percent, to 20629.39 following the rise in the Shanghai stock exchange.
The Shanghai index finished up 2.82 points, or 0.10 percent, to 2823.86; triggered investor expectations for economic stimulus from Beijing after apparently yet to show signs of strength.
China Resources Power Holdings Co Ltd rose 3.47%, shares of Belle International Holdings Ltd. gained 2.75, shares of Hengan International Group Co Ltd rose 2.18%, shares of Sands China Ltd. rose 2.07%, shares of China Unicom Hong Kong Ltd rose 2.06%.
According to analysts the movement of the Hang Seng Index rose today potentially limited in the range of 20450-20580 20380 Resistance.
Technically,
Resistance: 20380 20450 20580 High / Low: 20496/20177
Support: 20220 20160 20050 Closed Price: 20316
Comment: For intraday trade today suggest Buy at the level of 20200; stop loss 20150; targets 20510.
Euro Rises Against US Dollar
The euro strengthened against the US dollar supported optimism the German annual inflation rate to recover to 0.1% in May after falling into deflation in the previous month.
Germany’s economic recovery signals a positive sentiment for the euro before the monetary policy decisions of the European Central Bank (ECB), which will be announced on Thursday night this week.
Consumer Price Index (CPI) Germany also rose 0.3% in May compared to the previous month were down 0.4%. Actual data from Destatis is in line with expectations of a majority of economists.
Analysts said the euro against the US dollar will move higher in the resistance area around 1.1180 – 1.1260.
Technically,
Resistance: 1.1180 1.1220 1.1260 High / Low: 1.1143 / 1.1140
Support: 1.1100 1.1060 1.1010 Running Price: 1.1141
Comment: For intraday trade today suggest Buy at the level of 1.1100; stop loss at the level of 1.1060; targets 1.1198.
Stronger Oil Prices Moving
Crude oil prices rose following the fighting that erupted near the largest crude oil shipping port Libya.
According to John Auers, executive vice president at Turner Mason & Co. said the Libyan oil facilities Guard seized a town near Es Sider and unloading oil terminal of Ras Lanuf after fierce clashes with militants ISIS.
Strife in Nigeria and forest fires in Canada has also hurt output. “All of supply disruptions around the globe affect the balance of supply and demand,” as quoted by Bloomberg.
Libyan production had fallen to less than 400,000 barrels since gunmen attacked the oil at the end of 2014 and close access to oil exports.
State produce crude oil of 1.6 million barrels per day before the uprising in 2011 that ended the 42 year rule of Moammar Al Qaddafi.
Technically,
Resistance: 49.80 50.20 50.80 High / Low: 49.47 / 49.43
Support: 49.00 48.50 48.00 Running Price: 49.43
Comment: For intraday trade today suggest Sell 50.00 stop and reversal during a break above the 50.30; level targets at the level of 48.90; and target of reversal at the level of 60.00.
