Hang Seng Index Red, Dragged Shares Properties
Hong Kong stocks erase early gains on the session and closed lower on Friday, with local property stocks fell on worries about the possibility of austerity measures in the housing market of Hong Kong.
The Hang Seng Index turned lower in afternoon trading and ended 0.3% lower.
The Hong Kong Monetary Authority is scheduled to hold a press conference at the end of the day, amid expectations that they might launch a policy to ease the real estate market.
Local property companies giant largely slipped, like stock Wharf Holdings Ltd. slumped 2.9%, shares of Sun Hung Properties Ltd. and Henderson Land Development Co. Ltd. which both sank 1.6% and shares Wheelock & Co. Ltd which fell 1.5%, while that for property stocks gained on this day include shares of Cheung Kong (Holdings) Ltd. which is owned by Hong Kong tycoon Li Ka-shing, rose by 0.3% after their net profit in 2014 jumped 53% . Hutchinson Whampoa Ltd. shares rose by 0.6%, in line with their earnings rose more than doubled in the past year.
Technically, the index on the trading session today, Monday (02/03) 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 24 860 and 24 804 24925. If you fail, then the next index is expected to tend to retest the support level that is 24 760 and continued until the possibility of being in the 24700 area.
Political Risks Start Shadowing Sterling Performance
Sterling away from 8-week highs against the greenback on Friday as investors focus began to shift to the political risk ahead of elections next May, which helps dampen optimism over the outlook for the UK economy. The pound also fell versus the euro as the reduced attractiveness of UK assets only a few days before the European Central Bank begin large-scale bond purchases.
In this week’s team of analysts from large banks also have issued a warning about the risks that lurk Sterling, triggered concerns about spending and tax hikes and tighter financial sector regulation campaigned by the Labour Party.
“Despite today’s forex market looks unchanged, we estimate political factors will bring many problems to Sterling ahead of the election event,” according to analysts at RBC Capital Markets. “Based on current policy priorities, trading history around elections, and an assessment of the current market price, the only scenario which is clearly positive GBP limited only be strengthened if the vote leads to the Conservatives.”
Technically, the trading session today, Monday (02/03), pound sterling-dollar pair a chance to move in the negative trend.
The weakening of the pound sterling primarily expected soon reexamine the minimum support at 1.3672 and 1.3613 maximum. Meanwhile, if the pound sterling was able to break and hold above 1.3737, then the other alternative scenario that Pound chance to test resistance in 1.3802 and 1.3872 area.
Gold Gains Due on India Import
Gold prices opened higher 0.06% on the Comex this morning, Monday (03/02/2015) or at the level of US $ 1,213.8 per troy ounce.
In the morning session movements, commodity price hedging back moving up to US $ 1,213.6 per troy ounce. The price of gold this morning to move in the range of US $ 1,212.3 to US $ 1,215.3 per troy ounce as dikutuip Bloomberg on Monday (03/02/2015).
Meanwhile, on Friday (02/27/2015), precious metal commodity prices rose 0.25% or perched in the position of US $ 1,213.1.
Strengthening of gold prices occurred after India reportedly will increase gold imports. Imports are expected to rise to 100 metric tons in March from 25 metric tons in February, said Rajesh Mehta, chairman of Rajesh Exports Ltd.
“Imports India will increase to March due during the previous month of imports is very low,” said Mehta.
Technically, gold trading session today, Monday (02/03) the 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 1225.10 and re-test the maximum level of 1228.87. However, if the price of gold was unable to break and stays below 1220.20 then estimated the price of gold could potentially test the 1218.78 1216.40 Support.
