Kospi Index Surges Positive Performance
In early trade exchanges South Korea earlier in the week on Monday (23/11), positive Kospi Index opened 4 points, or 0.19 percent, higher at 1,994. Strengthening the Kospi supported the positive performance of blue chip stocks in the South Korean stock exchange.
In early trading this morning, the blue-chip stocks opened mostly positive. Shares in Samsung Electronics rose 0.16 percent, the steel producer Posco shares rose nearly 1 percent and SK Hynix shares also rose 0.16 percent.
While the focus of investors, is expected to remain at the Lotte Group where there is an internal power struggle between owners. Last week, the group lost one license to operate duty-free shop in Seoul for a competitor Shinsegae.
The group is also expected to apply for early review of its initial public offer (IPO) of the Hotel Lotte, who plans to be registered with local securities exchange operator Korea Exchange next month. The report said the IPO is expected to be completed by the end of the first half of 2016.
Lotte Shopping shares rose 0.9 percent, Lotte Chemical Corp. shares rose by 1.43 percent, and Lotte HiMart shares rose 0.17 percent.
As for the Kospi index futures also tracked up 1.25 points or 0.51% at 246.30, where the previous closing is at 245.05.
For today’s trading there is no longer the direction of domestic fundamentals. Analyst estimates will move higher Kospi index is limited to respond to the strengthening of global stock markets and positive performance shares.
Technically, the index on the trading session today, Monday (23/11) likely to weaken, test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume tends to increase, an early indication of bullish index. In addition, RSI, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the first support level 245.50 and 243.10. If it fails at 246.45, then the next index is expected to tend to retest the 247.00 resistance level and continued up to the possibility of being in the 248.50 area.
Euro Potentially Depressed Because Of ECB Stimulus Outlook
The euro moved near its lowest level in seven months against the dollar on Monday, weighed down by expectations that the European Central Bank will increase the stimulus next month.
Most of the major banks has had a strong view that the euro will go down to the parity level against the dollar in the months ahead as the Federal Reserve’s plan to Raise interest rates when the ECB take the opposite action.
Comments from European Central Bank president Mario Draghi on Friday has reinforced expectations for ECB launched a larger stimulus at a policy meeting on December 3, which has given the latest pressure on the euro.
Draghi said that the ECB is ready to act quickly to shore up its ailing inflation in the Euro zone. He highlighted the changes to the asset purchase program by the ECB and the level of deposits as a possible tool to stop inflation from dropping further below the range of 2% of their target.
Euro this morning to move the range of $ 1.0634, down slightly from around $ 1.0645 in late trading Friday. The euro hit a low of $ 1.0617 on Wednesday, it was the lowest level since mid-April.
Technically, the trading session today, Monday (23/11), the pair Euro-dollar likely to move in a negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.0540 and maximum 1.0460. Meanwhile, if the Euro is able to break and hold above 1.0606, then another alternative scenario the Euro a chance to test the resistance at 1.0650 and 1.0710 area.
Gold Prices Fall
Gold prices fell in Asian trade on Monday (23/11) morning, with little regional data and investors are strongly focused on interest rate increases by the Federal Reserve next month.
Division of the New York Mercantile Exchange, spot gold for December delivery dropped 0:20% at $ 1,074.80 a troy ounce, market participants focused on US economic data on Wednesday, for further indication on the strength of the economy and the possibility of a rate hike in December.
On this day, markets in Japan were closed for a holiday Thaksgiving Labor Day. Of the euro zone will release the survey data of manufacturing and service sector activity. Germany and France will also release a report. While the US will release private sector data on existing home sales.
Last week, gold prices ended the week at its lowest level since February 2010 last Friday, gold fell to $ 1,062.00, a level not seen in nearly six years, as investors cut holdings of precious metals on expectations the Fed will raise rates for the first time in nearly a decade at a meeting in mid-December. During the week, the price of the precious metal declined $ 15.60, or 0.41%, the fifth weekly direct losses and the longest weekly since last July.
Minute Fed meeting in October showed that most members of the Open Market Committee of the Federal believe a rate hike next month would be more appropriate, such as recent comments by Fed officials, including Janet Yellen, has strengthened expectations the US central bank will raise interest rates for the first time in nine years later on December 15 to 16.
On the other Comex trading, silver futures for December delivery fell 0.39% to $ 14,090 troy ounce. Elsewhere in metals trading, copper for December delivery was down 0.51% at $ 2,049 per pound. Copper has weakened because of the possibility of higher borrowing costs in the US, the price of the red metal fell by almost 30% since last May, triggered fears of a global slowdown by China and shook sentiment.
Technically, gold in today’s trading session on Monday (23/11) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Band begins to widen, thus giving impetus for gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1065.10 and re-test the maximum level of 1060.25. However, if the price of gold is able to break and hold above 1070.50, the predicted gold prices could potentially test Resistance ie, 1073.40 and 1078.72.
