Early Kospi Ends Flat
Mixed performance of leading stocks in the country along the South Korean stock market trading on Monday, appears to be still ongoing until the end of trading, where the Kospi index on Monday closed flat alias should be in the same position at the closing position at the end of the previous week’s trading.
The exchange ballast of Daewoo Securities amounted to -0.82%, -0.94% stake Amorepacific, SK Hynix shares -0.97%, -0.39% stake POSCO, Samsung Electronics -0.71%, but reinforced by KIA Motors shares amounting to 0.76%, shares S-Oil Corporation 0:45%, SK Innovation 1:35% 1:17% shares of Samsung Securities, Hyundai Securities 12:40%.
Kospi spot index on Monday closed in the same position with the closing position at the end of the previous week’s trading on a stock exchange at 2030.26 points and managed to record the biggest gain traded stocks on Monday at 2036.30 points and the lowest position Monday at the position 2022.25 points.
Likewise, the movement of futures Kospi on Monday to be closed up limited by 0:10 points, or 0:04%, to be 247.47 points from the closing position at the end of trading prior week at position 247.37 points and was able to record a positive performance greatest along trade the stock market today the position of 248.19 points and the largest drop on Monday at 246.44 points position.
Continue on the South Korean stock market trading Tuesday, predicted that investors will look forward and respond to the PPI data release results of both annual and monthly in the country in September last, which is indicated to be increased from the previous release.
Technically, the index on the trading session today, Tuesday (20/10) likely to weaken, tests 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 247.10 and 246.40. If it fails at 247.75, then the next index is expected to tend to retest the 248.10 resistance level and continued up to the possibility of being in the 248.70 area.
Sterling Winning Against Dollar And Euro, Optimism Expect Carney
Sterling rose against the dollar and the euro as investor optimism will address Governor of the Bank of England (BoE), Mark Carney, who is expected to affirm his statement that the rise in UK interest rates will be independent of monetary policy in the US. At the end of last week, officials of the Monetary Policy Committee (MPC), Kristin Forbes, said England could raise interest rates early. Forbes even said the impact of a slowdown in China and the developing countries will not be significant on the UK economy.
China’s economic data on Monday gave contradictory picture related to the Chinese economy making it hard for investors to estimate a US interest rate hike without getting another clue. Last month, the Federal Reserve kept its benchmark interest rate by a slowdown in China’s consideration of the risk of disturbing the US economic recovery. While the market speculated the European Central Bank (ECB) will send a dovish sentiment after the monetary policy meeting by the middle of this week, a sentiment that could weigh on the Euro.
Tomorrow’s BoE Governor Mark Carney will testify before the Treasury Select Committee. Last month, Carney said interest rate policy changes in the UK will be clearer when the turn of the year. However, the weak inflation and concerns about global growth kept investors assess the rise in UK interest rates as soon as happened in the last quarter of next year.
Technically, today’s trading session on Tuesday (20/10), 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 1.5530 and maximum 1.5600. Meanwhile, if the pound sterling was able to break and stays below 1.5477 then another alternative scenario, ie the pound sterling likely to test support in 1.5450 area and 1.5400.
Gold Prices Continue to Decline
Gold futures continue to decline in a row on Monday, amid uncertainty about interest rate increases.
Division of the New York Mercantile Exchange, spot gold for December delivery fell $ 11.30, or 0.96%, at $ 1,172.80 a troy ounce. Investors focused when the Fed will raise interest rates for the first time in nearly a decade, after the latest economic reports offered mixed data on US economic growth.
Optimism on inflation data and con sumer sentiment make Fed policy makers will wait until next year to raise interest rates. The uncertainty of interest rate hikes the Fed has been a constant source of debate in the market in recent months. The US central bank has two meetings scheduled before the end of the year, in late October and mid-December.
On the other Comex trade, copper for December delivery fell 1.1 cents, or 0.45%, silver futures for December delivery dropped -1.98% to a level of 15 795.
Technically, gold in today’s trading session Tuesday (20/10) 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 1165.33 and re-test the maximum level of 1160.73. However, if the price of gold is able to break and hold above 1170.40, the predicted gold prices could potentially test Resistance ie, 1173.40 and 1178.72.
