Kospi Ends Weaker
At the close of trading on the stock exchange yesterday South Korea, the Kospi index closed down -42.55 points, or -2.17 percent, at 1918.76. Weakening Kospi index ignores manufacturing purchasing activity plus South Korea.
South Korea’s manufacturing activity for December rose for the first time in 10 months, with the Nikkei / Markit Purchasing Managers’ Index (PMI), the size of factory activity rose to 50.7 on a seasonally adjusted basis, the results of November from 49.1.
The weakening of the index is expected with the South Korean government plans to resume monetary easing to strengthen the economy of South Korea, where investors are still looking at the plan and the steps.
Bank of Korea Governor Lee Ju-Yeol said the central bank will continue easing monetary policy to maintain the trend of economic recovery next year.
In a New Year message on Thursday, Lee said he expects the economy to recover gradually with weak inflation pressures. But he stressed the need to review the macroeconomic flow while the potential risks of slowing growth and higher inflation.
BOK governor said that the nation’s economic performance is not satisfactory this year, noting that economic growth is dull and the inflation rate is lower than the government’s objectives. He said the necessary restructuring and thorough reforms to improve economic fundamentals and increase its growth potential.
South Korea’s manufacturing activity for December rose for the first time in 10 months, with the Nikkei / Markit Purchasing Managers’ Index (PMI), the size of factory activity rose to 50.7 on a seasonally adjusted basis, the results of November from 49.1.
Meanwhile in stock trading, shares of Samsung Electronics fell 4.37 percent after reports emerged that the company’s chief executive, Kwon Oh-hyun, warned employees challenging conditions, due to lower global growth and greater competition. Samsung is expected to issue earnings guidance for the fourth quarter.
As for the Kospi index futures tracked down -5.45 points, or -2.27% to 235.00 positions, down from its previous close at 240.45.
This morning, the data will be released November Current Account is expected to increase from the previous results.
Technically:
Resistance: 235.75 236.25 237.00 Prev. High / Low: 239.95 / 234.70
Support: Closed 233.60 234.45 235.00 Price: 235.20
Comment: To intraday trade today suggest dilevel Sell 236.10 stop and reversal while break above the 236.40 level targets 234.40 and targets at the level of reversal at the level of 239.80.
Sterling Stronger On Economic Data
Sterling sustain gains against the US dollar after a report some domestic economic data that provide conflicting views. Based on the data compiled by Markit, the last month of expansion in the UK manufacturing sector dropped to 51.9 compared to the 52.5 expansion in the previous month. However, data from the Bank of England (BoE) showed an increase in consumer confidence related to its financial condition in the last month, based on the increase in the level of the individual loan in November to 5.3 billion pounds sterling of 4.8 billion Pounds Sterling in October.
Manufacturing PMI in December indicated a decline in UK economic growth opportunities in the past year, at least lower than forecast. These conditions maintain expectations the BoE will hold off a potential increase in UK interest rates from record lows as soon as the second half of this year.
In the US session, investors trading the GBPUSD pair will await the release of US manufacturing report from the ISM private institutions. Conditions shows that the sector is still contracting, or lower than 50, may provide power for the strengthening of Sterling.
Technically:
Resistance: 1.4760 1.4810 1.4860 High / Low: 1.4715 / 1.4706
Support: 1.4700 1.4640 1.4580 Running Price: 1.4714
Comment: To intraday trade today suggest at level Sell 1.4725 1.4760 stop loss at the level of the target at the level of 1.4630.
Gold Price Set In Green Zone
Started trading in 2016, the gold price rose after the price fall to cheapest in the last two weeks due to the selloff that hit stock markets and tensions between Saudi Arabia and Iran, as a result investors choose to buy gold safely step back.
Initially, China announced the data of their manufacturing index which showed a slowdown. Market participants responded by selling the shares owned. As a result, stock markets in developing countries fell to its lowest since last August. Exchange Dow Jones fell more than 300 points. This further chaos triggered a sell bigger so in trading Monday (01/04/2016) Shanghai stock exchange authorities decided to halt trading after stock index fell by 7% to sound the alarm termination of the transaction.
Meanwhile, Saudi Arabia and Iran’s relationship heats up after Saudi Arabia executed a Shia cleric and protests took place in Iran to lead to the burning of Saudi Arabia’s embassy in Tehran. Saudi Arabia with its allies decided to reduce the level of diplomatic relations with Iran. These conditions are the worst in the region’s diplomatic relations for 30 years.
Investors securing investment by purchasing gold as a safe haven asset. The increase in gold prices is reversing the year-end gold trading conditions were recorded as the third year in a row gold prices declined at the end of 2015. The downward trend in the gold price is in line with the prospect of higher US interest rates make the US dollar strengthened and weakened the bargaining position of gold as an asset investment. In addition, shares of gold producers also rose in early trading this year following the increase in the price of gold. Shares of Newmont Mining Corp. as the largest US gold producer occupy its highest price since mid-December last.
Currently, the gold price trading around $ 1075.20 per troy ounce, silver at the price of $ 13.842 per ounce. Seeing the condition of Saudi Arabia – Iran is still deteriorating, expected impact on the potential increase in the price of gold could take place within two to three weeks. Indeed, the economic slowdown in China is very real and give a great influence. With the current gold price that could be said on the position of cheapness, certainly there will be more consumers of gold glanced back this asset as an investment security when conditions appeared to deteriorate.
Technically:
Resistance: 1075.50 1078.80 1082.20 High / Low: 1074.00 / 1072.90
Support: 1070.00 1067.40 1064.10 Running Price: 1073.30
Comment: To intraday trade today suggest Buy dilevel 1071.10 1069.60 stop loss at the level of the target at the level of 1081.10.
