Kospi Gains Steady Follow Positive Sentiment
South Korean stock market experienced a significant increase in late trading Thursday. Spot index Kospi in Seoul stock markets strengthened to achieve the highest position since September 22 last. The rise in the stock market index is due to the support of positive regional sentiment. Investors shrugged off data showing that exports declined in September.
Exports declined sharply by 8.3 percent to 43.5 billion won compared with the same period the previous year. This data is better than the projected decline of 10 percent and a 14.9 percent decline that occurred in August last. Imports decreased by 21.8 percent.
Leading shares was still a decisive victory in Thursday’s trading. Hyundai Motor experiencing closures rose by 2.5 percent. Posco rose 1.5 percent. Naver experienced a sharp increase of 6.4 percent and reached the highest position in the past three months.
Thursday spot Kospi index increased by 16.51 points, equivalent to 0.84 per cent and closed at 1979.32 points. Meanwhile in the Kospi 200 index futures market closed at 239.05 points. This index futures rose sharply to 350 points compared to the previous closing. Today the index futures reached their highest level in five sessions.
Technically, the index on the trading session today, Friday (02/10) likely to weaken, test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume tends to increase, an early indication of bullish index. In addition, RSI, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the first support level 237.80 and 237.00. If it fails at 238.40, then the next index is expected to tend to retest the 238.90 resistance level and continued up to the possibility of being in the 239.40 area.
Sterling Responding Solid On Manufacturing Data
Sterling rose against the dollar after data showed UK manufacturing activity was better than expected, the opposite of US manufacturing activity was worse than expected.
Manufacture market activity index fell to 51.5 in England in September, from 51.6 in August, and better than economists’ forecast of 51.3. Sterling positive sentiment also came from the Office for National Statistics on Wednesday reported the confirmation of the UK’s economic growth of 0.7% in the second quarter, in line with economists’ expectations and the initial release. Separate data showed Britain’s current account deficit decreased to £ 16.8 billion in the second quarter, from £ 24.0 billion in the first quarter.
While the Institute for Supply Management reported the US manufacturing activity index fell to 50.2 in September from 51.2 in August and below analysts’ estimates of 50.8. Before the US Labor Department reported the number of people filing claims for unemployment benefits rose as much as 10,000 to 277,000 in the week ended 26 September, from the previous 267,000, compared to expectations addition of 6,000.
Technically, today’s trading session on Friday (02/10), pound sterling-dollar pair has an opportunity to move in a positive trend.
The strengthening of the pound sterling mainly expected soon reexamine the minimal resistance at 1.5190 and maximum 1.5250. Meanwhile, if the pound sterling was able to break and stays below 1.5139 then another alternative scenario, ie the pound sterling likely to test support in 1.5100 area and 1.5050.
Gold Low Ahead of US Payrolls Data
Gold moved away from two-week lows on Thursday as the greenback weakened versus the euro, after data showed the pace of growth in the US manufacturing sector slowed in September. But uncertainty ahead of the data release of the US Non-Farm Payrolls on Friday is still withstand the price of gold in a narrow range.
US employment data is expected to provide clarity about the timing of the Federal Reserve’s interest rate hikes this year, which could affect the price of gold and other US dollar-denominated assets. Estimates on US NFP data in September was also stronger following the release of the private sector employment data are optimistic on Wednesday, which helped weigh on bullion.
Economists in a Reuters survey predicted the US Non Farm Payroll will show growth of 203,000 jobs last month, compared with 173,000 jobs in the previous month. Some analysts argue that the numbers below 150,000 could trigger a bullish rally in the gold price, with a neutral movement is also possible if the figures released ranged from 190,000 to 210,000. While the numbers above 260,000 are at risk of triggering strong selling pressure on the gold price, considering it will increase the chances of a rate hike in October.
Technically, gold in today’s trading session on Friday (02/10) 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 1107.25 and re-test the maximum level of 1102.50. However, if the price of gold is able to break and hold above 1112.30, the predicted gold prices could potentially test Resistance ie, 1115.10 and 1120.25.
