Hang Seng is Still Worried About Greece
Hang Seng slumped as investors remained concerned at risk of a Greek exit from the euro zone. German and French government officials have signaled that the euro zone is now better prepared for a Greek exit if needed. Germany and France seem to not want to be pressed by the next Greek government is expected to ask for termination of the implementation of austerity measures and debt relief. The market is quite concerned face the risk of Greece in view of the opposition party Syriza now occupy the top spot in a survey of 22 elections next January.
Shares of energy companies and other related industries will come back into focus as world oil prices are still struggling near 5-year low levels in early Asian session. Investors worried sharp fall in oil prices in the last 6 months will undermine the company’s earnings outlook for energy and other related industries.
However, investors appear reluctant to push too deep fall of the index after the Chinese service sector data assuage investor concerns over the outlook for the largest economy in the world 2. Chinese service sector index (HSBC version) climbed from 53.0 to 53.4 for the month of November. “The service sector is still quite tough though manufacturing activity fell. It can relieve the pressure of economic slowdown in China,” HSBC said in a statement that the release of such data. Hang Seng futures fell 1.04% and is now trading at 23510.
Technically, the index on the trading session today, Tuesday (06/01) likely to weaken, test 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 rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 23450 and 23400. If it fails in 23500, we then estimated the index tends to retest the resistance level that is 23 535 and continued until the possibilities are in the area of 23 590.
Sterling Construction Data Press
After a rebound in early European session, the pound sterling weakened against the dollar after the release of UK construction activity data which showed a slowdown. The decline in construction activity will provide additional signal UK economic slowdown after manufacturing sector activity is also reported decreases.
Markit Economics reported the construction sector activity index fell to 57.6 in December, from 59.4 the previous month, and below economists’ forecast of 59.0. The rate of expansion of the UK construction sector has slowed in three consecutive months and are at the lowest level 17 months.
Markit On Friday reported the UK manufacturing sector activity index fell to 52.5 in December from 53.3 the previous month, and break the expectations of a rise to 53.7 by economists. The index number at the end of the year was the lowest in the last three months. GBPUSD traded at around 1525 at 18:50 pm with daily highs and lows 1.5318 1.5181
Technically, today’s trading session on Tuesday (06/01), pound sterling-dollar pair likely to move in a positive trend.
The strengthening of the pound sterling primarily expected soon reexamine the minimum resistance at 1.5315 and 1.5370 maximum. Meanwhile, if the Pound was unable to break and stays below 1.5265 then another alternative scenario that Pound chance to test support in 1.5220 and 1.5180 area.
Gold Surviving Above $ 1,200 For Second Session
Gold holds above $ 1.200 / onz after rallying for a second day to its highest level in nearly a week in the middle of the decline in equity markets and concerns that Greece may exit the euro area that has fueled the demand for haven assets.
Gold is currently trading at around $ 1,204.10 / onz at 9:17 pm from yesterday at $ 1,204.86, when the price rose to $ 1,207.60, it is the highest level since December 30. The precious metal has rallied from a one-month low at $ 1,168.34 on January 2, even though the price of oil and the euro extended weaken.
The value of assets in the SPDR Gold Trust, yesterday expanded for the first time in two weeks, rising from the lowest level since September 2008.
“Gold prices surged on the latest purchase physical gold,” said James Steel, an analyst at HSBC Securities (USA) inc. “Gold is up $ 1.200 translucent, ignoring the weakness of the euro and the slump in oil prices, the market tends to be more look to the equity markets to be a clue.”
Asian stocks extended losses in the middle of New York oil slipped below $ 50 a barrel for the first time since April 2009 on speculation that rising global output will worsen the already melimaph supply. The euro was near its lowest level in nearly nine years at the start of the campaign in Greece for the elections on 25 January that Prime Minister Antonis Samaras said that Greece may quit the euro area if Syriza main opposition party won the election.
Technically, gold trading session today, Tuesday (06/01) 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 1209.20 and re-test the maximum level of 1215.00. However, if the price of gold was unable to break and stays below 1204.30 then estimated the price of gold could potentially test the 1202.10 and 1200.20 Support.
