Hang Seng Falls Into Worst Position
Hong Kong shares ended the trading on Wednesday; the Hang Seng index plunged and plunged back into the position of the lowest index since December 2014. Sluggish stock trading today still China’s economic sentiment triggered alarming.
Looks entire sector stocks traded today still burdensome movement of the stock exchange, where the shares of Cathay Pacific Airways recorded a sharp decrease in the largest, amounting to -7.68%, followed by Galaxy Entertainment Group shares -4.43%, China Mengniu Dairy shares -3.74%, -3.36 Sands China shares %, shares of Ping An Insurance Group -2.89%, China Life Insurance shares -2.55%, and -2.15 stock Kunlun Energy.
Hang Seng index movement Wednesday relisted sharp decrease of -307.12 points, or -1.31%, degan become 23167.85 points from the previous closing position traded at 23474.97 points and the position successfully obtained the highest strengthening traded today at 23586.79 position points and the lowest decline in the position of 23133.3 points.
Similar to the movement of the Hang Seng Index futures on Wednesday, which also recorded a sharp drop of 342 points or 1:45%, to be 20.0073 points from the closing position traded earlier at position 23 475 points and managed to record the highest increase traded today at position 23 305 points and decrease lowest at position 23 066 points.
Continue in the next stock exchange trading, it appears that investors will await the result of the release of domestic inflation data in July indicated that then will experience a slight decrease from the previous inflation.
Technically, the index on the trading session today, Thursday (20/08) likely to weaken, tests 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 22825 and 22750. If it fails at 22 891, then the next index is expected to tend to retest the resistance level that is 22 930 and is likely to be continued until the 23000 area.
Germany Approves Greek Bailout, Euro Maintain Strengthening
Coming to the end of the European trading session today, the euro is still able to maintain gains against the dollar after Germany’s parliament approved the Greek bailout program. However, the currency of 19 countries is still moving within a narrow range. Compared with other major currencies, the euro looks low volatility.
US inflation data were lower than expected the euro to temporarily halt a four-day losing streak, the current market players await the release of the minutes of the US Federal Reserve monetary meeting which is expected to provide a bright spot when interest rates will be raised.
Although previously there were worries the opposition in voting Greek bailout program, but the majority of German lawmakers to vote “yes”, which means approving the agreement reached between the Greek government by the finance ministers in the euro zone last week. Greece will receive funding of € 86 billion euros in several stages, and the first estimated at € 13 billion will be received on Thursday, when the government of Athens had to pay its obligations to the European Central Bank.
Technically, today’s trading session on Thursday (20/08), the pair Euro-dollar likely to move in a positive trend.
The strengthening Euro is mainly expected to immediately re-examine the minimal resistance at 1.1180 and maximum 1.1240. Meanwhile, if the Euro unable to break and stays below 1.1132 then the other alternative scenario that Euro likely to test support in 1.1100 area and 1.1050.
Fed Minutes Relief, Gold Touching 1-Month Peak Level
The price of gold recorded its biggest daily rally in a week and touched the 1-month highs on Wednesday after minutes of the US Federal Reserve meeting last month signaled a rate hike chances are smaller in September, which triggered a sell-off of US dollar. Decline in global stock markets also boosted the appeal of bullion as a safe haven.
Minutes of the Fed’s July meeting showed policy makers are still concerned about the slow rate of inflation, while a weak global economy pose too great a risk to commit tighten policy. However, the US labor market improvement still remains support for a rate hike in the near future.
Expectations of raising US interest rates have become a major factor depressing commodity prices in recent months. The level of interest rates will increase the costs for storing commodities, making it less attractive to investors.
Technically, gold on the trading session today, Thursday (20/08) potential reversal, testing positive trend, but prone to profit taking. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Band begins to shrink, thereby giving impetus for gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1138.50 and re-test the maximum level of 1143.25. But if the gold price could not break and stays below 1133.90 then predicted gold prices could potentially test the Support 1130.10 and 1125.25.
