Hong Kong Shares Ended Lower
At the close of trading yesterday, the Hang Seng index in Hong Kong Stock Exchange closed down -197.51 points, or -1.03 percent, at 18924.57. The weakening of the Hang Seng index was triggered weakening crude oil.
In the Asia-hour oil trading session, the price of US crude oil futures fell from a session high of $ 29.47 to get down 0.52 percent at $ 28.89, per barrel while the price of global benchmark Brent crude oil fell 0.31 percent at $ 32, 08.
At the end of trading in Hong Kong stocks, oil stocks fell. CNOOC, Petrochina shares and Sinopec shares ended lower between 2.62 percent to 3.62 percent.
Oil rallied briefly in the overnight session in the US, after Saudi Arabia, Russia, Qatar and Venezuela said they would lead the effort to freeze production at the level of January. This is the first major deal in 15 years, with a final agreement in 2001, and that prior to 1998.
Iran, which re-entered the international market this year after the US-led sanctions on the Persian country are lifted, quickly said it would not reduce the share of the oil market. Reuters, citing sources familiar with the matter, reported that OPEC members could offer special terms under a global agreement to freeze the level of oil production.
While the movement of the Hang Seng index futures tracked down -198 points or -1.03% at 18,943.00, up from the previous closing at 19,141.00.
Technically,
Resistance: 19450 19530 19600 Prev. High / Low: 19385/19353
Support: 19300 19200 19060 Closed Price: 19 373
Comment: For intraday trade today suggest Sell at the level of 19460 stop loss at the level of 19520 the target at the level of 19110.
Stocks & Oil Crop Rebound Strengthening Yen
Yen turned weaker on the day yesterday as oil prices and the stock market rebounded, eroding the appeal of safe-haven Japanese yen. Earlier, the yen had strengthened in line with weakening Asian stock markets and a drop in oil prices.
Plus the value of fixing the yuan is set lower, a factor that suppresses currencies of developing countries and currencies like the Australian dollar growth. Oil prices rebounded in line with efforts to freeze production levels and slashed its global oil surplus focus to Iran, after the negative response of the agreement between Saudi Arabia and Russia on Tuesday. The rebound in oil prices helped prop up the European stock markets, but risk sentiment is still fragile amid fears of global economic slowdown.
The dollar tumbled to a level below 11 yen last week, the 16-month lows, after stocks and commodities fell and waning expectations of continued interest rate hikes by the Federal Reserve. The dollar rebounded after sentiment of risk aversion eased but is still vulnerable to movements in oil prices. Strategic estimated dollar / yen will hold in the range of 112-114, given the movement toward the area 110 will trigger the issue of intervention by the Japanese government. Meanwhile, risk sentiment is expected to dictate the direction of the current market, and traders will await the results of the Fed’s policy meeting minutes of January tonight as a guide. For the next month, the focal point for the dollar yen is the possibility of monetary stimulus by the Bank of Japan.
Technically,
Resistance: 114.20 114.69 116.00 High / Low: 113.31 / 113.82
Support: Running 112.70 113.10 113.50 Price: 113.94
Comment: For intraday trade today suggest Sell 114.10 stop loss at the level of 114.35 the target at the level of 113.15.
Oil Prices Still High in Asia
Crude oil prices rebounded in early Asian session on Thursday after the release of a report that the industry is optimistic about the US oil inventories.
On the New York Mercantile Exchange, crude oil WTI for March delivery jumped 1.88% to $ 31.23 per barrel. Meanwhile, Brent jumped $ 2.32, or 7.2%, to end at $ 34.50 a barrel on London’s ICE Futures exchange, which is the highest close in two weeks.
The American Petroleum Institute said crude stocks fell 3.3 million barrels last week, while distillate stockpiles fell 2.0 million barrels and gasoline fell 750,000 barrels. Later on Thursday, the US Energy Department will release its own figures that could show that US crude oil stockpiles rose 3.9 million barrels for the week ending on February 12.
Overnight, US crude oil futures jumped because officials from Iran endorsed a plan to stabilize the oil market.
Technically,
Resistance: 32.00 32.39 33.00 High / Low: 31.68 / 31.13
Support: 31.00 30.50 30.00 Running Price: 31.24
Comment: For intraday trade today suggest Sell 31.80 stop and reversal during a break above the 32.10 level targets at the level of 30.40 and target of reversal at the level of 32.90.
