Hong Kong Stock Supported Strengthening
At the close of trading yesterday, the Hang Seng index in Hong Kong Stock Exchange closed up 295.53 points, or 1.55 percent, at 19407.46. Strengthening the Hang Seng index pushed the Shanghai exchange gains and rising crude oil.
At the close of trading on China’s stock markets yesterday, the Shanghai index ended positively rose 45.93 points, or 1.71 percent, at 2733.91. Strengthening the Shanghai index pushed fresh stimulus from central banks to boost liquidity by cutting reserve requirement ratios (RRR) or the bank reserve requirement ratio.
On Monday, the People’s Bank of China unexpectedly cut bank reserve requirement ratio, cut the amount of cash lenders that country to be arrested in the backup. The move is designed to increase liquidity and to provide more stimulus to the economy slows.
The People’s Bank of China (PBOC) cut the RRR, or the amount of cash banks, by 0.5 percentage points. Cuts which took effect Tuesday, indicating that the vast majority of China’s large banks will have a reserve ratio of 17 percent. This is the fifth time in the last year that the PBOC has cut RRR, with the last cuts on October 23.
RRR cuts aim to boost liquidity in the economy, in hopes of boosting consumer spending and capital investment.
At the close of trading yesterday the shares of energy that sustains the Hong Kong stock exchange. Shares of Kunlun Energy Co Ltd rose 5.40%, shares of China Petroleum & Chemical Corp. rose 4.85%, CNOOC Ltd rose 4.15%, shares of China Shenhua Energy Co Ltd rose 3.48%, shares of PetroChina Co Ltd climbed 3 , 41%.
While the Hang Seng index futures movement observed rose 207 points, or 1.09% at 19,264.00, up from the previous closing at 19,057.00.
Technically,
Resistance: 19380 19450 19525 Prev. High / Low: 19324/18993
Support: 19220 19130 19 040 Closed Price: 19321
Comment: For intraday trade today suggest Sell at level of stop loss 19400 19455 19125
Pound Continue Rally In European Session
Pound exchange rate movements, which opened stronger in Asian session trading and the bullish move, still able to strengthen against the US dollar in yesterday’s trading at the beginning of the European trading session of March amid a stronger dollar against several of its main rivals such as the yen and the euro. Strengthening pair GBPUSD yesterday ignored the release of disappointing data on PMI manufacturing data by Markits
The negative sentiment is trying to suppress the pound comes from Markit Economic survey on the performance of British manufacturers decreased in February. The data is only increased by 50.8 percent or lower than the 52.3 percent the previous month period.
In terms of the movement of the US dollar index, since the beginning of the Asian session trade had a negative move and enter the European session by sentiment climbed back above. And for the American trading session, the strength of the US dollar will increase if the PMI manufacturing data and the ISM survey showed improvement Markits data.
Technically,
Resistance: 1.3990 1.4030 1.4070 High / Low: 1.3963 / 1.3945
Support: 1.3910 1.3870 1.3820 Running Price: 1.3955
Comment: For intraday trade today suggest dilevel Sell 1.3965 1.4000 stop loss at the level of the target at the level of 1.3870.
Oil Gains Steady Impact
Oil settled higher on yesterday, with crude oil West Texas Intermediate shifts at the highest level in eight weeks, after a news report said that most of the major oil producers supported the decision to stabilize crude oil production. Earlier, struggling to turn around, depressed after the data is dismal on Chinese manufacturing raised concerns about a slowdown in energy demand, but also supported by expectations that crude oil production will decline significantly.
Russian news agency TASS reported yesterday that the decision by a major manufacturer to stabilize oil production could be made later this month. After the news, WTI for April delivery settled at the level of $ 34.40 per barrel, up 65 cents, or 1.9%, on the New York Mercantile Exchange. It was the highest settlement since Jan. 5. Prices rose 0.4% over the past month. Meanwhile, Brent crude for April delivery on London’s ICE Futures exchange added 24 cents, or 0.7%, to a level of $ 36.81 per barrel.
Russian Energy Minister Alexander Novak said on Tuesday that 15 countries, producing 73% of oil in the world, supporting the decision to stabilize oil production, according to TASS news. The Minister also said that such a decision would be effective even without Iran, although it may include individual solutions for the country.
But according to commodity analysts, stabilize production just another way to say freezing production, and “freeze alone will not change the fact that the market is still oversupply.”
Technically,
Resistance: 34.25 34.75 35.25 High / Low: 33.97 / 33.78
Support: 33.50 33.00 32.50 Running Price: 33.93
Comment: For intraday trade today suggest at level Sell 34.50 stop and reversal during a break above the 34.80 level targets at the level of 33.00 and target of reversal at the level of 35.70.
