Kospi End Down, Inflation Data Watch Out
At the close of trading on the stock exchange South Korea earlier in the week on Monday, the Kospi index closed down -16 points, or -0.80 percent at 1,978.15. Weakening Kospi index triggered weakening Wall Street and the decline of data trafficking South Korea.
Stocks closed lower in late trading Friday weekend, depressed poor performance of health care stocks and weaker crude oil prices.
The Dow Jones Industrial Average closed 57.12 points lower, or 0.32 percent, at 17,773.64. The S & P 500 closed down 10.51 points, or 0.51 percent, at 2,065.30. The Nasdaq composite index closed down 29.93 points, or 0.62 percent, at 4,775.36.
South Korea recorded a trade surplus of USD8.80 billion in April 2016, down compared with a surplus of USD9.80 billion in the previous month, as imports fell more than exports, according to preliminary data reported to the Ministry of Trade, Industry and Energy (Motie) South Korea today Sunday (01/05).
At the end of trading yesterday, shares mo 1 carmaker Hyundai Motor fell 0.7 percent, while Kia Motors shares remained unchanged.
Shipbuilders also closed bearish, with shares of industry leader Hyundai Heavy Industries fell 4.31 percent, shares of Samsung Heavy Industries fell 5.61 percent.
Steelmakers also traded mostly lower, with shares of POSCO lost 4.99 percent, Hyundai Steel shares fell 3.5 percent.
As for the Kospi index futures tracked down -1.10 points or -0.45% at 244.25, down from a previous close at 245.35.
On the previous day the trade balance data will be released in April that South Korea is expected to decline from the previous results.
This morning will be South Korea’s inflation data is released in April indicated increased from the previous month.
Technically,
Resistance: 245.25 245.75 246.25 Prev. High / Low: 244.95 / 244.55
Support: 243.50 244.00 244.50 Running Price: 244.75
Comment: For intraday trade today suggest Sell 245.50; stop and reversal during a break above the 245.75; targets at the level of 244.05 and target of reversal at the level of 247.00.
EUR / USD Extends Increase
EUR / USD extended its gains during Asian session, last traded at new highs around 1.1540, with the theme of USD weakness persist because the Fed failed to commit to further interest rate hikes in the near future, judging from the latest FOMC.
Fundamentally, Valeria Bednarik, Chief Analyst at FXstreet, summarizes recent developments, noting that “data from Europe showed that the manufacturing sector in this region grew moderately in April, because the final revision of the manufacturing PMI Markit mixed, with the reading of Germany rose to 51.8, from 50.7 in March, but below expectations, while the figure for the European Union at 51.7 and France plummeted to 48.0. ”
For US data, Valeria adds: “The ISM manufacturing dropped to 50.8 in April from 51.8 in March, while manufacturing PMI Markit also scored 50.8. Also released Monday, US construction spending advanced in March to its highest level in more than eight years, up 0.3% from the previous month, giving hope of a slowdown in the first quarter was reduced, at least in the housing sector. ”
Uptrend remains strong, at its highest since August 2015, with Kathy Lien, Co-Founder at BK Asset Management, noted that despite the bullish trend, “there are many factors that could make the next few months is difficult for investors and EUR / USD in particular.”
Among the most pressing problem for Europe, Kathy called the “referendum Britain, the euro was recently able to curb the recovery in the region, there may also be new elections in Europe with leaders of Spain failed to resolve the political deadlock and crisis immigrants sparked nationalism in the whole continent. ”
Technically,
Resistance: 1.1570 1.1610 1.1650 High / Low: 1.1536 / 1.1519
Support: 1.1500 1.1450 1.1400 Running Price: 1.1534
Comment: For intraday trade today suggest Sell at the level of 1.1580; stop loss at the level of 1.1615; the target at the level of 1.1482.
Oil Continue Weakening Impact On Excess Supply
Concerns about oversupply of oil coupled with the uncertainty of demand, pushing world oil prices move lower at the end of the session Monday in the US for the second trading day in a row.
The US benchmark, West Texas Intermediate crude for delivery in June, dropped $ 1.14 and ended at the level of $ 44.78 per barrel on the New York Mercantile Exchange. In London, Brent North Sea crude for July delivery, the European benchmark, slid $ 1.54 to settle at the level of the next $ 45.83 per barrel.
Reports increased production in Iraq and Iran slowing down the momentum that lifted oil prices to their highest level in 2016 last week, analysts said. Iraqi oil exports reached a record 3.36 million barrels per day in April, Bloomberg News reported, estimates that Iranian production during the month reached 3.5 million barrels per day, the most since December 2011. The Iraqi Oil Ministry spokesman Assem Jihad said on Sunday that the oil exported from Iraq increased by 2.3 percent in April from the previous month, to an average of 3.364 million barrels per day.
“The oil market has led to a decline in trading after the May Day holiday (May Day), due to concerns that OPEC production continues to increase,” said Citi Futures analyst Tim Evans. Adding to concerns, the data showed Chinese factory activity slowed in April compared to the previous month. Overall Organization of Petroleum Exporting Countries (OPEC) have increased their production during April, as many as 484,000 barrels a day to 33.217 million barrels per day in April, according to the survey of oil companies by Bloomberg. Countries a major crude producer had failed to reach an agreement to suspend global production at a meeting April 17 at Doha, Qatar.
Technically,
Resistance: 45.10 45.50 46.00 High / Low: 44.83 / 44.65
Support: 44.25 43.75 43.25 Running Price: 44.77
Comment: For intraday trade today suggest Buy at the level of 44.00; stop loss at the level of 43.70; the target at the level of 45. 50.
