Hang Seng End Down 1.5 Percent
In yesterday’s trading the Hang Seng in Hong Kong Stock Exchange ended down -292.39 points, or -1.45%, to 19826.41. The weakening of the Hang Seng index weakening depressed Wall Street, following comments from Federal Reserve officials who revived the prospect of rising US interest rates as soon as June.
In the midst of rising oil prices, after a new investor concerns about the Fed’s policy rate hike move sooner rather than later.
Sentiment in Hong Kong has been weak in recent weeks, due to fears that signs of recovery of the Chinese economy began to fade.
Technically,
Resistance: 19750 19825 19 900 High / Low: 19821/19638
Support: 19625 19560 19 470 Closed Price: 19 686
Comment: For intraday trade today suggest Buy 19600; stop loss at the level of 19550; the target at the level of 19 850.
US Dollar Rises Sharply After FOMC Meeting Minutes
The dollar index rose more than 0.6% after the release of FOMC meeting minutes indicating an opportunity US rate hike at the June meeting. CME Group 30-Day Fed Fund futures indicated US interest rates opportunities 0.5-0.75% in June increased from 19% to 34% the previous day.
USDJPY touched the top 110 for the first time after 3-weeks.
Meeting notes in April FOMC meeting showed officials generally agree the US labor market is quite solid and the financial markets continued to improve after being shaken at the beginning of this year. The majority of officials feel a rate hike in June worth doing if the economic indicators consistently show increased economic growth in the second quarter, labor market conditions are more solid, and inflation leads to the central bank’s 2% target.
Technically,
Resistance: 110.50 110.90 111.30 High / Low: 110.13 / 110.11
Support: 109.00 109.50 110.00 Running Price: 110.13
Comment: For intraday trade today suggest Sell 110.30; stop loss at the level of 110.55; the target at the level of 109.32.
Oil Market Decline, Dollar Remove Effect Increase in Demand
Trading crude oil turned lower after the US dollar rose sharply and to eliminate the effects of solid demand. Crude oil prices hit a new high in 2016 when the market focused on a drop in distillate inventories in the US and ignoring surprise rise in crude supplies.
Reports Energy Information Administration (EIA) showed there was an increase of 1.3 million barrels of US crude oil supplies last week, but gasoline inventories decreased by 2.5 million barrels. Crude oil prices rose to near $ 49 responds to strong demand.
The oil market then turned lower after hawkish FOMC meeting minutes indicated the central bank is ready to raise interest rates in June if the data supports. Crude oil was forced to end a two-session rally.
Technically,
Resistance: 48.90 49.39 49.90 High / Low: 48.51 / 48.45
Support: 48.10 47.70 47.30 Running Price: 48.51
Comment: For intraday trade today suggest Sell 49.00; stop and reversal during a break above the 49.30; and target of the level of 48.00 reversals at the level of 50.50.
