Hang Seng Affected Geopolitical Conditions
At the close of trading yesterday, the Hang Seng index in Hong Kong Stock Exchange closed negative -89.63 points or -0.40% at 22,498.00. The weakening of the Hang Seng index is still affected by the condition of the Russian-Turkish tension after the fall of the Russian fighter jet in the Syrian border.
At the close of trading yesterday, shares of the Hang Seng index is weighted stock Power Assets Holdings Ltd which fell -2.89%, stock Want Want China Holdings Ltd which fell -2.35%, shares of China Merchants Holdings International Co. Ltd. which fell 2.29%, shares of China Mengniu Dairy Co Ltd fell -2.25%, shares of China Resources Power Holdings Co. Ltd. fell -2.09%.
While the Hang Seng index futures movement natural negative result, down slightly by -4 points or -0.02% at 22 520 from the closing position at the end of the previous stock exchange trading on 22 524 positions.
On the next trading day this Thursday there will be the release of economic data, namely Hongkong Balance of Trade in October indicated by the consensus of economists will increase at the position H $ -35.2 billion from the previous H $ -36.4 billion. There will also be a data Exports (YoY) in October, indicated by the consensus of economists will increase at the position -3.8% from the previous -4.6%. While Data Imports (YoY) in October indicated by the consensus of economists will increase at the position -7.1% from the previous -7.6%.
But keep in mind a flood of data indicated US economic indicators are positive, it will strengthen the US stock exchanges and can support the strengthening of Asian markets.
Technically, the index on the trading session today, Thursday (26/11) 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 22425 and 22350. If it fails at 22492, then the next index is expected to tend to retest the resistance level 22530 and continued until the possibilities are in the 22580 area.
Euro Unencumbered By ECB Policy Options
The euro touched a 7-month low against the dollar yesterday after Reuters reported the European Central Bank is considering options such policy to levy fees on banks hoard cash or will buy more bonds.
Approximately a week before the next ECB policy meeting, a number of options are still open, ranging from buying up the bonds of cities and regions to introduce a penalty fee of two stages on the banks to park their money in the ECB, according to senior sources. The results of a Reuters poll released Wednesday showed that the ECB will increase savings interest rate became -0.30% from -0.20% today.
ECB officials are discussing a separate level of interest rates, a move which will impose higher costs on banks depending on the amount of their savings on the ECB, in order to reduce the impact of cuts in interest rates on bank savings.
Steps from the ECB is almost similar to what the SNB, and it is very logical, according to the strategic. Draghi said he wanted to target inflation rate, which cannot be achieved by cutting interest rates by 0.1%, corresponding estimate of the market, he added.
The euro briefly rose as rising geopolitical tensions pushed the level of demand for the euro and yen, before it must be re-dropped after a report from Reuters was released. The weakening euro niali boost the dollar against other currencies, pushing up the dollar index to an 8-month high level.
Technically, the trading session today, Thursday (26/11), the pair Euro-dollar likely to move in a negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.0570 and maximum 1.0510. Meanwhile, if the Euro is able to break and hold above 1.0624, then another alternative scenario the Euro a chance to test the resistance at 1.0650 and 1.0700 area.
Gold Down On Strengthening Dollar
Gold ended the US trading session with moderate decline, pressured by a bearish condition of external factors.
Analysts also see pressure on gold as a result of the rise in the US dollar index hit a seven-month Nymex crude oil prices are lower and not far from three-month lows.
The tension on the Turkish military to shoot down Russian combat aircraft could still be heard, and it is becoming one of the risks in the market. Russian President Vladimir Putin launched a war of words with Turkey and said his country would retaliate. NATO officials have sought to play down the issue.
Gold does look no simple reinforcement on Tuesday, especially on the news, and most do not predict that this situation will increase further.
Meanwhile, calm trading was also seen during the US session on Wednesday as ahead of the US Thanksgiving holiday on Thursday. Economic data released varied and precious metals does not appear to offer significant price reaction to the data.
Technically, gold in today’s trading session on Thursday (26/11) 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 1066.50 and re-test the maximum level of 1061.10. However, if the price of gold is able to break and hold above 1071.80, the predicted gold prices could potentially test Resistance ie, 1074.40 and 1079.72.
