Kospi Slips After Three-Day Gain Streak
South Korean stock market fell in early trade on Friday (3/4), together with some major Asian bourses other woods that have been opened. Despite the positive sentiment coming from Wall Street which rose on Thursday, but investors still tend to be cautious.
Attention turned to China, which is South Korea’s largest export market. China started the biggest annual political meeting of the National People’s Congress (NPC) on this day, and will determine the next five-year plan, or China’s economic blueprint for 2016-2020.
China’s economic growth target this year will also be determined at the meeting, and analysts expect the target of 6.5% – 7%.
Technically,
Resistance: 240.10 240.65 241.40 Prev. High / Low: 240.00 / 239.60
Support: 238.50 239.10 239.50 Running Price: 239.80
Comment: For intraday trade today suggest Sell at the level of 240.70 stop and reversal during a break above at the level of 240.90 level targets at the level of 239.00 and target of reversal at the level of 242.10.
Greenback Surrender vs. Euro
Greenback potentially posted the biggest daily decline in more than 3-weeks versus the euro on Thursday after data showed a decrease in employment in the US service sector, which added to concerns over the US employment official data released Friday.
The Institute for Supply Management (ISM) reported employment index fell to 49.7 in February from 52.1 in the previous month, marking the first drop in service sector jobs since February 2014.
Some analysts said the report could intensify concerns about the US labor market and the potential to dampen expectations for Federal Reserve interest rate hike in the near future. A rise in interest rates could boost the performance of the US Dollar to encourage the flow of investment into the US.
Technically,
Resistance: 1.1025 1.1065 1.0980 High / Low: 1.0951 / 1.0940
Support: 1.0900 1.0860 1.0820 Running Price: 1.0949
Comment: For intraday trade today suggest Sell at the level of 1.1000 stop loss at the level of 1.1036 the target at the level of 1.0902.
Crude Oil Prices Mixed
Crude oil prices ended mixed in throughout yesterday’s trading sideways, with the increase in US crude inventories and a lack of new advances for freezing production agreement.
US crude oil futures prices closed down 9 cents, or 0.26 percent, at $ 34.57 per barrel. While the price of Brent crude oil futures rose 12 cents to $ 37.04 per barrel.
In less than two months, crude oil futures Brent and WTI have earned around $ 10 per barrel, or about 30 percent, from 12-year lows between $ 26 and $ 27.
Crude oil prices rebounded from early weakness after Russia’s largest oil producer Rosneft said one pipe that serves as a hub for shipments of crude oil to China damaged by a power failure. This pipeline is expected to be repaired within 24 hours, said Rosneft.
The rally has also been fueled by the promise of the Organization of Petroleum Exporting Countries to cooperate with other major oil producers to freeze production at the highest level in January.
But the agreement made in February by a few large producers, led by Russia and Saudi Arabia, is expected to be little to reduce the excess supply, not least because production in the first months of this year were at or near record highs.
A Gulf OPEC delegate said on Thursday that the Gulf countries would prefer oil producers meeting will be held in the first half of April, particularly in Doha, or the other in the city of Gulf countries. The meeting is expected to take place in March.
Data from market intelligence provider Genscape forecast inventory in the main delivery point for US crude futures have risen to a new peak above the record high of the government report on Wednesday, traders saw the data.
Technically,
Resistance: 35.00 35.39 36.17 High / Low: 34.81 / 34.54
Support: 34.20 33.70 33.00 Running Price: 34.68
Comment: For intraday trade today suggest sell at the level of 35.25 stop and reversal during a break above at the level of 35.55 level targets at the level of 33.60 and target of reversal at the level of 36.80.
