Hang Seng Index Moves Sideways
At the close of trading yesterday, the Hang Seng index in Hong Kong Stock Exchange closed negative -88.82 points or -0.39% at 22,665.90. Hong Kong stock exchange trading sideways and ended in the red zone.
Chinese brokerage companies traded in Hong Kong, Guotai Junan Securities shares fell 0.39 cents, or 12 percent, after reports emerged that the leader Yim Fung lost.
Shares of real estate developer Evergrande Real Estate Group, gained 3.41 percent after announcing plans to enter the insurance market via a joint venture with Great Eastern Life.
As for stocks that become ballast exchange is the Hongkong stock Galaxy Entertainment Group Ltd which fell -3.95%, Sands China Ltd. shares were down -3.31%, shares of China Resources Power Holdings Co. Ltd. fell -2.31%, stock China Merchants Holdings International Co. Ltd. fell -2.26%, shares of China Unicom Hong Kong Ltd fell -1.19%.
While the Hang Seng index futures movement natural negative result, down by -26 points, or -0.11% at 22 669 from the closing position at the end of the previous stock exchange trading on 22 695 positions.
On the next trading there is no data of Chinese economic indicators to be released, but the need to continue to observe the movement of global stock markets and world commodity prices.
Technically, the index on the trading session today, Tuesday (24/11) likely to strengthen, test positive trend. At the M15 chart bullish hammer formation to provide opportunities for the index to move upside. However, the volume tends to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the first resistance level of 22750 and 22825. If it fails at 22 693, then the next index is expected to tend to retest the support level of 22650 and continued up to the possibility of being in the 22600 area.
Sterling Vulnerable Ahead of Carney Speech
Sterling weakened against the dollar and euro on the day yesterday, with investor focus fixed on the speech from British finance minister and the governor of the Bank of England (BoE) this week. According to the strategic weakening of sterling was mainly due to the strengthening of the dollar, and the outlook is still bullish in the medium term.
Market participants said the market still has not started to anticipate the opportunities that the UK might choose to leave the European Union next year, adding to the risk of increased volatility ahead of the referendum. The referendum was also said to be able to affect a rise in interest rates. BoE Governor Mark Carney will give a testimonial before the Treasury Select Committee in Parliament on Tuesday, and will be the market focus on interest rate hikes instructions.
Pouns had soared to 3-month highs against the euro and a basket of currencies last week as expectations that the monetary policy of the euro zone will be back loosened, the UK’s main trading partners. The contrast with this, the next policy move from the BoE predicted a rise in interest rates. But the market has prompted a BoE rate hike expectations until the end of 2016, approximately one year after the expected rise in US interest rates by the Federal Reserve in December this year.
Technically, the trading session today, Tuesday (24/11), pound sterling-dollar pair has an opportunity to move in a negative trend.
The weakening of the pound sterling mainly expected soon reexamine the minimum support at 1.5075 and maximum 1.5025. Meanwhile, if the pound sterling was able to break and hold above 1.5123, then the other alternative scenario that is Pound chance to test resistance in 1.5150 and 1.5200 area.
The Gold Price Cheap
Gold futures prices traded around cheapest price in the last 5 years, after many investors prepare themselves from the possibility of a rise in US interest rates next month. Gold Price as stuck in its worst condition since last July, along with the strengthening of the US interest rate hike expectations. Of course, this increase will make the appeal of gold as an investment destination has decreased.
Travelling gold in 2015 is preparing to record the decline in prices for the third time in a row amid speculation that the Fed will begin tightening monetary policy. The results of the regular meeting of October FED yesterday, as published last week showed the emphasis by officials of the Federal Reserve that they are very open to raise interest rates in December. If so, then the fall in gold prices will not stop until here. Analysts from Goldman Sachs Group Inc. in the publication on 18 November yesterday stated that the price of gold itself is estimated to be down in the next 12 months.
At the end of last week, the Governor of the Central Bank of the United States San Francisco area John Williams stated that there is a pressing need to raise the federal funds rate in December if the economic data support it. Impact, the US dollar strengthened on the highest level in seven months against the euro, dashed hopes of strengthening other alternative investments. Not only that, the statement of John Williams, as reported by Bloomberg also made a number of ETP holdings decreased to its lowest level since 2009. The investment managers seem to prefer to sell.
Data from the US government, on November 16, said that SPDR Gold ETP holdings by investment management institution John Paulson and his firm retains number ETP holdings in the third quarter. While two-thirds of brokers believe that interest rate hikes will be made in December, after reading the results of regular meeting of the Fed’s policy makers generally agree that interest rate hikes will be gradual. Not surprisingly, the market has to suck this picture of a rate hike earlier.
Like the saying, gold has drowned and as an investment asset has been shunned. A stronger US dollar is still the anchor for the sinking of the gold price. Until the decision to raise interest rates is executed, then the price of gold will still along this price, gold prices for futures contracts fell and traded at $ 1,066.60 an ounce on the Comex, NY. Gold prices fell in five weeks in a row. This is the longest decline in the gold price since July 24 yesterday. The number of parties that take short positions in both the trading of gold futures and options contracts reached 8989 during the week to November 17, according to US Commodity Futures Trading Commission published on 20 Nevember yesterday. Compared with the previous week the data that reached 21 530 contracts, this number decreases. The amount of long positions that do reach 92 318, at least recorded since December 2008.
Gold bullion, which has been the destination of investment security when geopolitical turmoil appears, has also failed to maintain its superiority in trading last week. Tested during the attack Paris on November 13, which killed more than a hundred lives and injured hundreds of others, failing to strengthen the price of gold bullion. Overlooked by investors, bullion increasingly miserable with weak demand for physical gold, particularly in India and China which has been the world’s largest gold consumer. One Swiss gold refiner, Valcambi has estimated that India’s gold imports on average a year declined to 850 metric tons of usually amounting to 875 metric tons during the last five years. Interestingly, investors seem to not be shaken by acts of terror is to make the reasons gold hunt back. For them, a single terrorist as happened in Paris, has not been able to convince them to change the movement of gold prices in the market. As a result, investors like to ignore.
At least, the Fed has clearly demonstrated this December to raise interest rates will be very slow moving afterwards. No doubt, there is little enthusiasm for the US dollar, however, with a very low inflation rate coupled with slow growth in the international economy also it is increasingly difficult for gold to get prime position as an investment destination.
Technically, gold in today’s trading session Tuesday (24/11) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Band begins to widen, thus giving impetus for gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1064.10 and re-test the maximum level of 1059.25. However, if the price of gold is able to break and hold above 1069.70, the predicted gold prices could potentially test Resistance ie, 1072.40 and 1077.72.
