HK Shares End Down After Delayed Trade Links
Hong Kong shares closed Melema Monday, after the market town said they were unsure when trading link is eagerly awaited by the mainland will be launched.
The blue chip Hang Seng Index fell 158.97 points, or 0.7%, to 23143.23 after trading between 23012.80 and 23275.40. A total of HK $ 56.75 billion (US $ 7.32 billion) are traded on the main board as compared to HK $ 50.17 billion Friday.
Head of city exchanges, Charles Li, on Sunday said no launch date has been agreed for the connection of the planned stock-trading with the
Shanghai Stock Exchange. Link had been expected to begin in late October.
Li declined to give a timetable for approval may be given, something which would require approval from the Hong Kong and mainland Chinese government.
Shares of Hong Kong Exchanges & Clearing, which operates the stock slipped 4.7% to HK $ 166.20. Stock brokers in Hong Kong listed mainland hopes to benefit from the link also slumped. Haitong International Securities Group fell 5.4% to HK $ 4.36 and Guotai Junan International Holdings fell 4.5% to HK $ 5.13.
Technically, the index in the trading session today, Tuesday (28/10) likely to weaken, test negative trends, the impact of Wall Street. On the bearish engulfing formation M15 chart gives an opportunity for the index to move downside. However, the volume is likely to increase, an early indication of a bullish index. In addition, RSI, on the M15 chart, is in the oversold area, cue upside.
It is estimated, the index test in advance the level of Support 23100 and 23150. If it fails at 23 131, then the next index is expected to tend to retest the resistance level of 23150 and followed up the possibility of being in the 23200 area.
Limiting Ifo report Appreciation Euro
Euro cut most strengthening against the US dollar on Monday, after a decline in German business sentiment offset banking sector stress test results were better than expected. Ifo survey showed business sentiment index fell to its lowest level in nearly two years, as well as recorded a decline in the 6th row.
Previous single currency had drawn support from the European Central Bank’s stress test which showed 25 of the 130 largest banks block the
Euro does not have enough capital to withstand potential financial shocks at the end of last year.
“The market continues to be overshadowed thought that the ECB will act more aggressively in terms of monetary policy, that is what curb Euro /
Dollar to move higher in the short term,” said Adam Myers, head of European currency strategy at Credit Agricole in London. Myers estimates that the Euro will return a negative move ahead of a Federal Reserve policy meeting that will begin on Tuesday.
Technically, the index in the trading session today, Tuesday (28/10) likely to weaken, test negative trends, the impact of Wall Street. On the bearish engulfing formation M15 chart gives an opportunity for the index to move downside. However, the volume is likely to increase, an early indication of a bullish index. In addition, RSI, on the M15 chart, is in the oversold area, cue upside.
It is estimated, the index test in advance the level of Support 23100 and 23150. If it fails at 23 131, then the next index is expected to tend to retest the resistance level of 23150 and followed up the possibility of being in the 23200 area.
Gold ends of Post Falls, US data
At the close of trading on commodity exchanges in Monday metals, gold plummeted and failed to maintain the previous position after the release of a series of economic data that makes investors away from gold.
Gold for December delivery fell 2.50 cents at $ 1,229.30 an ounce. Gold futures were likely to find support at $ 1,207.30 with the highest resistens at $ 1,231.50.
Silver ends for delivery in December fell 2 cents at $ 17.16 an ounce.
On Friday of last week, gold tutun ends in two days in a row after rising fears of Ebola virus that makes investors seeking alternative safe haven of precious metals.
The decline of gold at the end of trade due to the lack of post-release support and a series of US economic data. According to a report from Markit, PMI services sector has dropped to 57.3, from 58.9 in the previous month. Markets expect PMI for the services sector slowed to 57.9.
Sales of new homes rose slightly in September and reached a six-year high, though the purchase in August is less passionate as reported.
New homes sold at an average annual rate of 467, 000 in September, from a revised 466,000 the previous month. While the forecasts of analysts down to 455,000.
Earlier, the Commerce Department has said that new home sales reached 504,000 in August, but sharply correct monthly reports. Sales of new homes in September was the highest since July 2008. And sales of new homes is higher 17% compared with the same month in 2013, a sign that the housing market continue to increase.
Sales jumped 12.3% in the residential area west and rose 2% in the residential area of the South.
In other metals trading at the end of the day Monday, platinum for delivery in January rose $ 3.60 at $ 1,254.50, while palladium for December delivery rose $ 6.25 at $ 787.15 an ounce level and Copper for December delivery rose 2 cents in level of $ 3.06 per pound. –
Technically, gold at today’s trading session on Tuesday (28/10) potentially bearish, tested negative trend back, but prone to reversal. The RSI indicator is likely to re-test support channel and towards the oversold area, but the Bollinger Bands which began to widen, thus giving impetus to gold to the upside.
It is estimated that the price of gold immediately prior to test support at least in the area of 1220.90 and re-test the maximum level of 1215.50.
However, if the price of gold is able to break and hold above 1225.50 then estimated the price of gold has the potential to test the 1230.10 and 1235.90 Resistance.
