Hang Seng Gains Powered
At the close of trading on Monday start of the week, the Hang Seng index in Hong Kong Stock Exchange closed up 235.74 points, or 1.17 percent, at 20435.34. Strengthening the Hang Seng index driven gains on Wall Street and a rise in the Shanghai stock exchange.
Stock Market Wall Street closed sharply at the end of last week pushed crude oil prices rise and the investor takes a more positive view of the European Central Bank stimulus. The Dow Jones Industrial Average closed up 218.18 points, or 1.28 percent, at 17,213.31 The S & P 500 closed up 32.62 points, or 1.64 percent, at 2,022.19. The Nasdaq composite index closed up 86.31 points, or 1.85 percent, at 4,748.47.
Strengthening the Shanghai bourse also influence the strengthening of the Hang Seng Index. At the close of trading on China’s stock markets yesterday, the Shanghai index closed positively, up 49.58 points, or 1.76 percent, at 2859.89. Strengthening the Shanghai index compelled statements in support of securities regulators.
At the end of the Hong Kong stock exchange trading, most sectors rose, with the property sector rose more than 2 percent.
Shares of China Vanke Co. Ltd. jumped 10 percent to a two-month high, after the Chinese developer said core earnings in 2015 grew 13 percent to a record high, and will buy state-owned assets of Shenzhen Metro Group through a share placement.
Other stocks that strengthen Hong Kong shares of Cheung Kong Property Holdings Ltd which rose 4.84%, shares of Hengan International Group Co Ltd rose 3.59%, shares of Tencent Holdings Ltd. rose 3.51%, shares of Henderson Land Development Co Ltd rose 3.33%, MTR Corp Ltd shares rose 2.75%.
While the Hang Seng index futures movement was observed by 150 points or 0.74% at 20,387.00, up from the previous closing at 20,237.00.
Technically,
Resistance: 20420 20490 20 590 Prev. High / Low: 20378/20282
Support: 20300 20220 20150 Running Price: 20 353
Comment: For intraday trade today suggest Buy at the level of 20300 20250 and stop loss at level 20510.
China Concerns Back Shadowing AUDUSD
The Australian dollar slipped from a peak of 8-month high versus the greenback as signs of a slowdown in China’s new dampen enthusiasm for the high-yield asset-ber that also have pushed global stock market rally.
Reports last week showed retail sales and industrial output of China is lower than expected. Industrial output of China, Australia’s biggest export market, failed to meet the estimate of 5.6% with only a 5.4% rise recorded in January and February from a year earlier. Meanwhile, retail sales grew 10.2% from a year earlier, lower than the predicted 11%.
Besides that, Aussie was also weighed down by the decline in iron ore. The price of iron ore futures turned lower amid concerns that the recent rally was overdone.
AUDUSD is currently trading around 0.8% lower at $ 0.7505, with strong penetration below the MA-21 on 4-hour chart around 0.7500 is needed to encourage further weakness towards $ 0.7460 area at least in the short term.
Technically,
Resistance: 0.7520 0.7560 0.7600 High / Low: 0.7520 / 0.7477
Support: 0.7440 0.7400 0.7360 Running Price: 0.7481
Comment: For intraday trade today suggest Buy at the level of 0.7435 stop loss at the level of 0.7400 and targets 0.7530.
Oil Prices Down
Crude oil prices slipped from three-month highs on the session on Monday, after Russia gives support to Iran’s refusal to align with other major manufacturers in a joint effort to trim output.
On the New York Mercantile Exchange, WTI crude oil for delivery in April traded in wide ranges between $ 36.69 and $ 38.66 per barrel, before settling at $ 37.23, down 1.27 or 3.30%. On Friday, the contract in April for US crude oil jumped above $ 39 per barrel and reached its highest level since early December.
On the Intercontinental Exchange (ICE), Brent for May delivery traded between $ 38.82 and $ 40.51 per barrel before closing at $ 39.60, down 0.79 or 1.96% in yesterday’s session.
After a meeting with the Iranian oil minister Bijan Zanganeh and Energy Minister Hamid Chitchian, the Russians, Alexander Novak, the Persian Gulf states confirmed the intention to resume production before agreeing to a freeze of production can be supported up to 10 oil major powers. The comments put a crimp into developments related to the first potential deal-Non OPEC OPEC in 15 years. It happened one day after firmly Zanganeh told reporters that Iran does not intend to approve any deal until production reaches pre-sanctions level of around 4 million barrels per day.
Technically,
Resistance: 37.60 38.10 38.60 High / Low: 37.38 / 37.17
Support: 36.70 36.20 35.70 Running Price: 37.20
Comment: For intraday trade today suggest Buy at 36.44 stop loss at the level of 36.10 and at the level of target 38.10.
