Hang Seng Down Impact
At the close of trading yesterday, the Hang Seng index in Hong Kong closed sharply lower exchange -344.15 points, or -1.82 percent, at 18,542.15. Decline in the Hang Seng index distressed outflows and concerns over economic slowdown and China.
The Hang Seng Index slumped 1.8 percent at the close, making the ratio of the price of books under one. Last traded below that level, when the Asian financial crisis that has shaken the region’s market and property bubble burst. Hong Kong dollar traded near its lowest level since August 2007, while the benchmark money market rates surged to its highest level since May 2009.
Money flowing out of Hong Kong, one of the most open economies in the world, because China’s growth slowed to the weakest pace since 1990 and speculators bet on the currency ended the city against the dollar. Capital outflows leading to higher benchmark interest rates, heightening concerns that higher funding costs will weigh on the banking and real estate industries of the city.
The Hang Seng Index has dropped 15 percent this year, while Hong Kong dollar slumped to their lowest levels this century on Wednesday. More than half of the shares with 50 members trading at book price ratio below one, with New World Development Co. and Wharf Holdings Co for less than 0.4 times the value of their net assets, data compiled by Bloomberg. Centaline Property Agency Ltd. secondary measure house prices have slumped almost 9 percent from its September record.
Analysts expect earnings per share for the Hang Seng Index fell 11 percent in the next 12 months, data compiled by Bloomberg show.
At the close of stock trading this afternoon, stocks that suppress the stock exchanges of Hong Kong is China Resources Beer Holdings Company Ltd which fell -14.11, shares of Henderson Land Development Co Ltd fell -6.10%, China Overseas Land & Investment Ltd. down -4.84%, shares of New World Development Co Ltd fell -4.39%, Hang Lung Properties Ltd shares fell -4.26%.
While the movement of the Hang Seng index futures tracked down -126 points or -0.67% at 18,625.00, down from the previous closing at 18,751.00.
Technically,
Resistance: 18830 18910 19010 Prev. High / Low: 19256/18530
Support: 18700 18620 18 450 Closed Price: 18 750
Comment: To intraday trade today suggest Buy at the level of the stop loss at the level of 18 605 18 555 18 965 at level targets.
Euro US Dollar Drops
Comments President of the European Central Bank (ECB) is considered dovish favorable US dollar in trading against several major currency pairs. Greenback gather profits even though the number of US citizens who filed unemployment claims reached the highest level in six months.
The dollar rose against the euro and safe-haven currencies such as the Yen and the Franc. However, expectations of additional stimulus in the euro area as soon as March, the positive response riskier assets such as stocks and oil markets, valuation boost commodity currencies.
Loonie sensitive to oil price movements continued trade recovery after a 2-week at the beginning of this year continued to decline. The increase in crude oil prices close to the psychological level of $ 30 per barrel opening bullish momentum Loonie and the Aussie and Kiwi, too accumulate profits.
Meanwhile Sterling also posted gains slightly against the dollar, after being depressed before the ECB press conference. Official statement of the Bank of England (BoE) were satisfied with the decrease in the valuation of the domestic currency did not inhibit investors to buy Sterling although the price is still far moved from the 7-year lows. Martin Weale, who became one of the nine members of the Monetary Policy Committee (MPC) BoE, said in a Bloomberg News interview that the fall of Sterling against other currencies can eliminate the impact of oil prices and a slowdown in domestic wage growth.
Technically,
Resistance: 1.0890 1.0940 1.1000 High / Low: 1.0875 / 1.0846
Support: 1.0800 1.0750 1.0700 Running Price: 1.0847
Comment: To intraday trade today suggest at level Sell 1.0894 1.0930 stop loss at the level of the target at the level of 1.0799.
Gold Prices Weakened
Gold prices ended the US trading session with a moderate decline in the day yesterday, the pressure on technical correction and some mild profit taking following recent gains this.
A rise in the US stock market also limiting buying interest in safe-haven precious metal.
Asian stock markets moved lower yesterday, following a selloff in the US stock market on Wednesday, pushing major indexes are at multi-month lows. European stock markets rose as traders and investors wait for regular monetary policy meeting of the European Central Bank on Thursday. ECB kept its benchmark interest rate unchanged, in line with what was expected.
However, ECB President Mario Draghi at a press conference gave a very dovish statement, which signaled the ECB can and will implement more quantitative easing of monetary policy, probably the fastest in March. This news makes the Euro currency sunk and pushed the US dollar index and also lift the US stock market and in turn, it is weighed on gold.
Crude oil prices reached 12-year lows on Wednesday finally experienced a solid rebound on Thursday. However, bearish crude oil still dominates because of fundamental and concerns that many companies in the oil industry and the banks that have loans to companies, are in big trouble and could default on its obligations.
Concerns about slowing economic growth in China, the world’s second largest economy, also weighed on stock markets around the world. There is also concern that the difficulty of capital outflows from China, it would be more damaging to China’s economy.
Technically,
Resistance: 1101.50 1103.80 1105.20 High / Low: 1101.60 / 1099.30
Support: 1097.00 1093.40 1091.10 Running Price: 1099.30
Comment: To intraday trade today suggest Sell at level 1102.33 1104.83 stop loss at the level of the target at the level of 1092.33. 
