Hong Kong Exchanges Decline
At the close of trading early last week, the Hang Seng index in Hong Kong Stock Exchange closed negative -331.89 points or -1.48% at 22064.25. A significant decline in Hong Kong depressed negative sentiment pressing tragedy Paris shares and other related flight in Hong Kong stock exchange. Hong Kong’s economic slowdown also provide negative sentiment for the Hong Kong stock exchange.
Yield data of domestic economic indicators, namely Hong Kong Q3 GDP Growth Rate (YoY), which was released on Friday, experienced a 2.3% decline in the position, which increased compared to a survey of economists indicated at the level of 1.8%, but down from the previous result on 2 , 8%. This indicates a slowdown in the economy in Hong Kong.
Meanwhile the occurrence of acts of terror in Paris, France on Friday, making the airline business and travel declined due to concerns of security and the level of travel warning that run in multiple countries. Such as Cathay Pacific shares fell 2 percent on the Hong Kong stock exchange.
While the Hang Seng index futures movement also experienced negative results, decreased by -335 points or -1.50% at 21 984 from the closing position at the end of the previous stock exchange trading on 22 319 positions.
Tuesday (17/11) will be released Hongkong economic indicator data is data Unemployment Rate is expected to be stable in October, the same as the previous figure at 3.3%.
Technically, the index on the trading session today, Tuesday (17/11) likely to strengthen, test positive trend. At the M15 chart bullish hammer formation to provide opportunities for the index to move upside. However, the volume tends to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the first resistance level of 22100 and 22170. If it fails at 22041, then the next index is expected to tend to retest the support level of 22010 and continued up to the possibility of being in the 21950 area.
Euro Weakens Despite Potentially Rising Inflation
The euro weakened on yesterday investors reacted to the bloody attacks that took place in Paris on Friday, and switch to safe-haven assets like the US dollar and the Japanese yen. Before the tragedy Paris euro has been under pressure due to expectations of monetary easing by the European Central Bank in the months ahead, with the possibility of lower interest rates and increase the asset purchase program.
Meanwhile, Eurostat revised the inflation (year-on-year) eurozone from previous releases of 0% to 0.1% in October, the increase is helped by an increase in the price of fruit and vegetables. Block 19 countries in September recorded a deflation of 0.1%. Economists polled by Reuters had forecast inflation will not change at 0%.
Core inflation that excludes energy and food sectors in the calculation rose 1% in October from 0.8% in September. Although the return of inflation, price pressures in the euro zone is still weak, and the pressure for the ECB to loosen monetary untukk.
Executive board member of the European Central Bank (ECB), Yves Mersch, said the central bank has not yet decided whether the asset purchase program or Quantitative easing (QE) should be increased. Mersch said the governing council is still waiting for economic growth and inflation projections for 2017, which will be announced in conjunction with the monetary meeting next December 3rd.
Technically, the trading session today, Tuesday (17/11), the pair Euro-dollar likely to move in a negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.0625 and maximum 1.0575. Meanwhile, if the Euro is able to break and hold above 1.0684, then another alternative scenario the Euro a chance to test the resistance at 1.0710 and 1.0760 area.
US Rate Hike Expectations Chance Immerse Gold Prices
Gold prices trim gains on the day yesterday, after the initial flow of safe-haven buying after the attacks in Paris slows and investors refocused to expectations for the US Federal Reserve Raise interest rates in December.
Spot gold prices rose as much as 1.4% to its highest level in 10 days at $ 1,1097.90 / onz and last are flat the range of $ 1.082, is still moving above the lowest level in six years at $ 1,074.26.
Meanwhile, the price of US gold futures for December contract ended up 0.3% at $ 1,083.60 / onz.
Senior analyst of investment in the US said that the events in France have made a significant impetus to the strengthening of the price of the precious metal.
But after that, I think the market back to a fundamental shift perhatianya broader market. He also said that we saw an increase in risk, but fundamentally influenced by the Fed really be a major focus and it seems difficult to be shifted.
Within 10 minutes of trading on Monday, nearly 3,000 lots changed hands, almost 10 times more than the average of 300 lots for the opening 10 minutes of the first in the past two months, indicated in a Reuters calculation.
Analysts said gold opened higher earlier in the session behind what happened over the weekend were influenced by geopolitical risks, but it seems it is only a short walk because macroeconomic problems bigger is the strengthening dollar and the (expected) increase in US interest rates.
The dollar rose against major currencies, and US and European equity markets rose moderately, as the market grew more confident that the Fed will Raise interest rates next month and reduce investor fears over serangang on Friday night in Paris.
Technically, gold in today’s trading session on Tuesday (17/11) 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 1078.50 and re-test the maximum level of 1073.10. However, if the price of gold is able to break and hold above 1083.90, the predicted gold prices could potentially test Resistance ie, 1085.40 and 1090.50.
