Hang Seng Up, Highest in 3 Months
Hong Kong shares rose to its highest closing level in three months on the day yesterday, tracking global markets, after upbeat Chinese trade data in March raised expectations for first-quarter GDP figure of the country that will be released this Friday.
The Hang Seng Index rose 0.9 percent, to 21,337.81 points, while Hong Kong China Enterprises Index rose 0.5 percent, to 9,237.90.
“We believe the trade, the data in March new car sales and electricity consumption data (in China) point to a potential upside surprise,” wrote Morgan Stanley.
“In the near term, we continue to expect an increase in the cycle following the stimulus measures of the past still filtering through the economy,” he said.
Most sectors rose on the day yesterday, but mining stocks and energy stocks fell as investors took profits after a jump on Wednesday.
Technically,
Resistance: 21400 21480 21550 Prev. High / Low: 21544/21297
Support: 21300 21205 21010 Closed Price: 21343
Comment: For intraday trade today suggest Sell at 21400, stop loss 21455 and target at 21100.
Pound Still Depressed BOE Decision
Amid the European trading session yesterday and ahead of BOE’s monetary policy announcement last night, naturally pound exchange rate profit taking entered the second straight day after a surge in the value of the pair to new highs 7 trading days earlier this week.
In terms of the movement of the US dollar, the condition of entering the European session the dollar declined against major rivals compressive power. The decline was triggered by strong power back in crude oil prices lifted commodity exchange. And tonight feared the release of inflation data and US unemployment claims suppress strong dollar.
Technically,
Resistance: 1.4170 1.4210 1.4250 High / Low: 1.4147 / 1.4131
Support: 1.4100 1.4050 1.4000 Running Price: 1.4134
Comment: For intraday trade today suggest Buy at the level of 1.4100 stop loss at the level of 1.4065 targets at level of 1.4197.
Gold Still Weighed In Dollar
Gold continued the trend of weakening in the day yesterday, scored separately decrease the second consecutive day amid strengthening US Dollar. Gold, which is considered as a safe haven, fell 1% on Wednesday as a rally on stock markets and other risky asset markets.
Strengthening of the dollar itself has appeared since the Asian trading session, especially against Asian currencies as a result of the Singapore central bank’s decision to limit its currency in order to boost growth. But Dollar also had retreated from gains in the US trading session after economic data showed consumer prices in March rose below economists’ estimates, the data indicate that the Federal Reserve may still be cautious in raising interest rates.
The Fed has sought to cut expectations for a rate hike this year, reducing the potential increase in interest rates from 4 times to 2 times in this year. Level of higher interest rates tend to weigh on gold prices as it will lead to more yielding assets became more attractive.
Technically,
Resistance: 1227.10 1229.60 1231.50 High / Low: 1229.70 / 1225.50
Support: 1223.70 1221.00 1219.10 Running Price: 1225.70
Comment: For intraday trade today suggest Buy at 1222.00 stop loss at 1220.00 and target level of 1230.50.
