Hong Kong Exchanges depressed
The Hang Seng index in Hong Kong Stock Exchange closed down in the previous session of -125.46 points, or -0.61 percent. The weakening of the Hang Seng index due to concerns about the Chinese economy and the uncertainty of interest rate hikes in the Federal Reserve meeting this week added another British referendum next week that define Britain will leave the EU or not.
Global investors are increasingly worried about the potential Brexit after voting poll recently showed support for the British exit from the European Union rose. British referendum would be held on 23 June.
In trading days this week, stocks slump is Lenovo Group Ltd shares were down -3.67 percent.
Shares of Power Assets Holdings Ltd. fell -2.31 percent, shares of China Merchants Holdings International Co. Ltd. fell -2.28 percent, Link REIT shares fell -2.25 percent, Li & Fung Ltd. shares fell -2.13 percent.
While the movement of the Hang Seng index futures fell -172 points, or -0.84% at 20,176.00, down from the previous closing at 20,348.00
Technically
Resistance: 20112 20221 20 360 High / Low: 20331/20169
Support: 19974 19616 19 351 Closed Price: 20176
Comment: For intraday trade today suggest Sell at 19 980; stop loss at 20 120 target at 19 630.
The yen rose in Asian market
The yen moved higher in early Asian market on Wednesday, continuing demand for safe-haven while the British Pound trended lower, with attention focused on the Federal Reserve’s latest statement of policy today and the polls ahead of the vote on membership of the U.K. in the European Union.
USD / JPY was changing hands at 106.03, down 0.08%, while the GBP / USD was trading at 1.4110, down 0.03%. AUD / USD was trading at 0.7350, down 0.12% and the NZD / USD was trading at 0.6985, down 0.13%.
In New Zealand, in the first quarter current account surplus came at NZ $ 131 billion compared to quarter-on-quarter, wider than the level of NZ $ 105 billion per year in comparison, showed a deficit of NZ $ 7.50 billion, compared with a deficit expected from NZ $ 7.48 billion.
While the Federal Open Market Committee (FOMC) is not expected to raise short-term interest rates at the June meeting, the Fed chief Janet Yellen could provide clues as to whether the US central bank could lift rates before the end of autumn. The FOMC has left the benchmark federal targets Funds Rate steady at a level between 0.25 and 0.50% in each of the first three meetings this year.
Investors also continued to monitor the results of the poll in the UK, which continued to show the British public are shifting their support to the campaign, ahead of next week’s controversial referendum Brexit.
The US dollar index, which measures the strength against six major currencies, last quoted at 95.03.
Technically,
Resistance: 106.12 106.26 106.39 High / Low: 106.26 / 105.65
Support: Running 105.89 105.78 105.65 Price: 106.05
Comment: For intraday trade today suggest sell at 106.12; stop loss at 106.40; target at the level of 105.80.
Gold is still up in the opening of the Asian market today
Gold prices still rose up slightly in early Asian trading on Wednesday, investors are waiting for the discussion of the Federal Reserve on the outlook for interest rates this year as well as watching the latest news sentiment for the possibility U.K. out of the EU.
On the Comex division of the New York Mercantile Exchange, gold for August delivery edged up 0.05% to $ 1,288.75 per troy ounce. Silver for July delivery fell 0.20% to $ 17.390 per troy ounce, while copper for July delivery fell 0.10% to $ 2.041 per pound.
The Federal Reserve will take action on a 2-day meeting in June to discuss monetary policy, with a closely watched interest rate decision on Wednesday afternoon.
In the evening session trading yesterday, gold remains near four-week highs, boosted fears trigger Brexit German bunds 10 years-leading to negative territory for the first time in history.
Elsewhere, the impact of the German 10-year yield fell to a record low of minus-0034 before rallying slightly to minus-0,008, as traders continue to accumulate risk of losing money to safe-haven assets, pushing yields lower.
As a result, financial stocks across the euro zone fell on Tuesday. Shares in both Deutsche Bank AG (DE: DE: DBKGn) NA O.N. (NYSE: DB) and Credit Suisse (SIX: SIX: CSGN) Group AG (NYSE: CS) fell sharply, each touching a new record low during the session. In Asia, the results of Japan’s five year fell to a record low of minus-0.28%.
Technically
Resistance: 1286.72 1288.52 1290.32 High / Low: 1286.40 / 1274.86
Support: 1283.12 1278.25 1270.52 Running Price: 1283.65
Comment: For intraday trade today suggest Buy at 1280.91; stop loss at 1270.19; target at 1288.75.
