Hang Seng Streaking 1000 Points in Early Trading
Stock Exchange of Hong Kong, the Hang Seng, shot more than 1000 points in early trade Asian session today, after yesterday’s trading recorded an increase of 3.8%. Investors from China started to go massively to Hong Kong after the program was launched China’s trade connections between exchanges with Hong Kong. Trade in Hong Kong on Wednesday reached $ 2.7 billion, more than three times the previous daily record high reached on April 2, with Chinese investors also use the entire quota of daily trades worth $ 1.69 billion.
Although it has been launched since November, but the effects of the trade connections running slow and has seen in recent days. Strengthening difference between the stock market of China and Hong Kong becomes the trigger magnitude of capital inflows from China. Since last June, China’s Shanghai Composite index has gained 97%, while Hong Kong’s Hang Seng index “only” up 16%. The transfer of capital flows from China to Hong Kong seen from market movements today, the Hang Seng Index is currently racing around 4.13% to 27320.06 opposite the Shanghai Composite Index fell 0.15% to 3988.68.
Hang Seng Futures traded the range of 27 304 at 9:21 pm, with the level, the highest daily low of 26 707 and 27 992
Technically, the index on the trading session today, Thursday (09/04) 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 rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 26800 and 26740. If it fails at 26 887, then the next index is expected to tend to retest the resistance level that is 26 925 and continued until the possibilities are in the area of 26 980.
Pound Exchange Rate Track Down
The pound today (01:57:14 GMT, Thursday, April 9, 2015) tracked down against other major currencies. Opened in the range of 1.4868 in early trade (0000 GMT), the currency is down about -7 pips or about -0.05% and the value of rolling GBPUSD was observed in the range of 1.4861.
Ahead of a report from the Bank of England is scheduled to release the latest data on monetary policy in the United Kingdom, Pound seemed to start moving down. Some economists suspect that the report will be published to show progress are not encouraging.
Some economists estimate that the indicator can show the Official Bank Rate unchanged at 0:50% figure is equal to the value of the previous period is 0.5%. The pound was observed to move early thin respond to these developments.
Analysts r daily forex fundamental analysis suggests Pound sterling that the normal range of movement in the GBPUSD is estimated to have the support level at 1.4793 and resistance level at 1.4957.
Technically, the trading session today, Thursday (09/04), pound sterling-dollar pair a chance to move in the negative trend.
The weakening of the pound sterling primarily expected soon reexamine the minimum support at 1.4800 and 1.4740 maximum. Meanwhile, if the pound sterling was able to break and hold above 1.4864, then the other alternative scenario that Pound chance to test resistance in 1.4890 and 1.4950 area.
Precious Metals Weakens Ahead of FOMC Speech
Gold prices still in decline on Wednesday (8/4) night, investors focused on the FOMC members who will give a speech in the next few hours.
On the Comex in New York Mercantile Exchange, gold futures for June delivery fell 40 cents, or 0.03%, traded at $ 1,206.00 a troy ounce. Investors will focus on the latest minutes of the Fed to see the signal indication on the central bank’s next policy after Friday’s NFP data observed decline triggered uncertainty over the timing of interest rate hikes.
Futures is almost 6% lower than $ 1,140.60 on March 17, as an indication that the economy slowed in the first quarter on speculation the Federal Reserve that delay interest rate hikes until the end of 2015. The delay in raising interest rates would be seen as a strengthening of gold, as reduce costs the metal does not offer any guarantee payments to investors.
In other trading places on the Comex, silver futures for May delivery rose 2.2 cents, or 0:13%, traded to the level of $ 16.86 a troy ounce, while copper for May delivery fell 2.0 cents, or 0.73% to trade to a level of $ 2,743 per pound.
Technically, gold in today’s trading session on Thursday (09/04) 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 Bands that began to widen, thus giving impetus to the gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1190.89 and re-test the maximum level of 1185.80. However, if the price of gold is able to break and hold above 1196.50, the estimated price of gold could potentially test the 1198.60 and 1200.80 resistance.
