The Kospi index rally, Supported By Stock Company Exporter
Korean stock market traded higher on Tuesday, reversed gains on Wall Street overnight and ahead of a series of central bank meetings.
Performance optimists among exporters has led the Kospi index to rise to the highest level in one and a half weeks in the range of 258.30, up by 4:15 points, or 1.63% at 10:03 pm.
Stocks rally include Hyundai Motor and Kia Motors, each jumped 2% and 0.9%, while LG Display shares rose by 0.9% due to the won is still moving at near 20-month lows at 1.130 per dollar ahead of a policy meeting Federal Reserve.
Samsung Electronics, which start direct trade between the won-yuan today, erasing losses in early trade to record a gain of 1%.
Meanwhile, Singapore Airlines on Tuesday morning confirmed that they are in talks to acquire the shares of low-cost airline company South Korea Jeju Air. Stock AK Holdings, the airline’s parent company, jumped 2.9% after the news.
Technically, the index on the trading session today, Tuesday (17/03) is likely to strengthen, test positive trend. At the M15 chart bullish hammer formation provides opportunities for the index to move upside. However, the volume of which is likely to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first resistance level of 259.50 and 260.25. If it fails at 258.80, then the next index is expected to tend to retest the support level of 258.50 and continued until the possibilities are in the 257.25 area.
Pound Sterling Rebound From 5-Year Low Point
The pound rebounded from the lowest level in the last 5 years against the US dollar on Monday, as investor caution ahead of the Federal Reserve’s monetary policy meeting this week that will test scenario Fed rate hike in mid-2015.
FOMC meeting will begin on Tuesday and the results will be announced on Wednesday. Market participants expect the Fed will signal the Fed’s rate hike in June, but saw a 20 percent rally in the dollar against major currencies in the last 6 months, investors have become more pessimistic about the possibility of Fed rate hikes.
So far the pairing GBPUSD strengthened 0:55% at the level of 1.4821, after reaching the highest point at 1.4852 intraday and daily lows at 1.4771.
In addition, investors will await the UK corporate earnings reports, as BoE signaled the increased rate of corporate profits can be considered to raise interest rates. If earnings rise above estimates, potential rebound pounds still continues.
Technically, today’s trading session on Tuesday (17/03), pound sterling-dollar pair likely to move in a positive trend.
The strengthening of the pound sterling primarily expected soon reexamine the minimum resistance at 1.4880 and 1.4950 maximum. Meanwhile, if the Pound was unable to break and stays below 1.4826 then another alternative scenario that Pound chance to test support in 1.4770 and 1.4725 area.
Gold Moving In Close Low Level 3 Months Before FOMC
Gold held near its lowest level in three months as investors weigh the outlook for US interest rates higher before the Federal Reserve began its two-day meeting.
Gold is currently moving the range of $ 1,155.20 / onz at 9:48 pm of $ 1,154.81 on Monday. Precious metals on March 11 slipped to $ 1,147.72, it is the lowest level since Dec. 1.
Key to the debate on the Fed meeting March 17-18 would be if the economy was strong enough to ensure the elimination of the promise to “be patient” on the rise in borrowing costs. While the improvement in the labor market has increased speculation that interest rates will be increased for the first time since 2006, data on Monday showed manufacturing unexpectedly cut production in February and the level of confidence of home builders fell in March.
“Half of all economists estimate that the word” patient “will be removed from the Fed guidelines,” says the analyst of IG Markets Ltd. in writing the email.
According to a report from the central bank on Monday, factory output fell 0.2% after a revised 0.3% to a decrease in January. The level of trust among builders residence unexpectedly fell to an eight-month, the data indicated by the National Association of Home Builders / Wells Fargo.
Technically, gold trading session today, Tuesday (17/03) the potential reversal, tested positive trend, but prone to taking profit. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Bands that began to shrink, thus giving impetus to the gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1157.10 and re-test the maximum level of 1160.87. However, if the price of gold was unable to break and stays below 1155.60 then estimated the price of gold could potentially test the 1154.78 and 1152.40 Support.
