Hang Seng Looks Optimistic
Hang Seng rose, still supported by a series of Chinese data released yesterday which calmed investor concerns over the state of the world economy in the 2 largest. China’s economic growth was steady at 4.3% in the last quarter of 2014 and industrial production rose 7.9% in December. Hang Seng futures rose 0.42% and is now trading at 24 070.
Investors also looks sure to be maintained in line with China’s economic growth momentum back the increased flow of foreign investment (FD) directly. This morning, the Ministry of Commerce of China pointed out FDI in China recorded an annual rise of 10.3% to $ 13.32 billion for the month of December. This is higher than FDI inflows in November to reach $ 10.36 billion.
External sentiment is quite mixed. The rising tide of expectations that the ECB will launch QE policy this week make sure investors will soon be improved economic conditions in the euro zone. However, investors are also anxious to get back the energy sector and other related industries post back drop in world oil prices yesterday. Investors are worried that the sharp fall of oil prices since July 2014 revenue outlook will undermine companies engaged in the energy sector and other related industries.
From the corporate sector, Cheung Kong Infrastructure Holdings shares fell 1.9% after the company owned by billionaire Li Ka-shing is uttered intention to raise $ 500 million to help finance the purchase of the British company Eversholt Rail Group. Shares of China Galaxy Securities will also receive attention after the brokerage company announced plans to sell shares worth $ 2.3 billion in Hong Kong to help finance loans for stock traders.
Tencent Holdings shares rallied 2.9% after selling part of its stake in Kingsoft as part of an effort to clicking unlisted Xiomi Technology, the leading smartphone manufacturer in China. China’s stock brokerage observed rise after Chinese regulators denied rumors that the agency is planning to hamper trading in China. Shares train manufacturer CSR and China CNR strong rally after the release of the report on the approval of a merger between the two companies.
Technically, the index on the trading session today, Wednesday (21/01) is likely to strengthen, test positive trend. At the M15 chart bullish hammer formation provides opportunities for the index to move upside. However, the volume of which is likely to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first resistance level of 24 280 and 24 232 24330. If you fail, then the next index is expected to tend to reexamine the level of support that is 24200 and continued until the possibility of being in the 24150 area.
Yen Tend Bearish
Trade the yen against the dollar still looks bearish, triggered from declining commodity prices and the high US dollar against other major currencies.
USDJPY fell -0.14% to 118.64 level.
In trading fundamentals, the BoJ will be a press conference to be attended by the BoJ governor Haruhiko Kuroda but time is still tentative, and the BoJ interest rate announcement is also still in a tentative time.
BoJ is likely to keep monetary policy unchanged, influenced by the fall in energy prices. Last night, the dollar itself remains at 12-year highs against other major currencies, after the International Monetary Fund cut its forecast of global economic growth in 2015 and growth of the Chinese economy that failed to boost investor confidence
Global growth is estimated at 3.5% for 2015 and 3.7% for 2016, the IMF said in its latest Economic Outlook, lowered 0.3 percent during the second year. However, the IMF raised its US growth for this year.
Technically, the trading session today, Wednesday (21/01), the dollar yen pair a chance to move in the negative trend.
The weakening of the yen mainly expected soon reexamine the minimum support at 116.25 and 114.50 maximum. Meanwhile, if the Yen was able to break and hold above 118.23, then the other alternative scenario that Yen chance to test resistance in 119.45 and 120.80 area.
Gold Back Stronger Because ECB Outlook
Gold rose more than 1% on Tuesday to its highest level in 4 1/2 months due to uncertainty in the stimulus program of the European Central Bank is expected to be launched on Thursday which has prompted investors are more likely to switch to a haven assets less risky.
US gold futures ended in February rose 1.4%, at the level of $ 1.294 / onz. The precious metal has risen for the seventh straight session. Gold has risen about 7% during the period, it was a seven-day rally the strongest since September 2007.
Anxiety in the financial markets is currently focused on the ECB meeting on Thursday, where the bank is widely expected to launch quantitative easing, and the Greek elections on Sunday, the poll results while exhibiting anti-bailout Syriza party would win.
“Jitters ahead of the Greek elections and the next ECB meeting showed that the majority of investors tend to buy gold until at least the existence there is little clarity on the fate of the Euro area,” said David Jollie, analyst at Mitsui Precious Metals.
Gold posted its biggest weekly gain in the last week since mid-August as risk aversion triggered by the Swiss National Bank’s decision to remove restrictions franc exchange rate against the euro.
Technically, gold trading session today, Wednesday (21/01) potential reversal, tested positive trend, but prone to taking profit. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Bands that began to shrink, thus giving impetus to the gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1298.20 and re-test the maximum level of 1334.87. However, if the price of gold was unable to break and stays below 1295.30 then estimated the price of gold could potentially test the 1294.10 and 1292.20 Support.
