Hong Kong Stocks Eroded Slower
At the close of trading yesterday, the Hang Seng index in Hong Kong Stock Exchange closed down -222.33 points, or -1.15 percent, at 19,192.45. The weakening of the Hang Seng index in 2015 depressed economic slowdown and weakening crude prices.
Hong Kong’s economy grew at the slowest annual pace since at least 2012, as a slump in tourist arrivals and exports continued to deteriorate, said Hong Kong Financial Secretary, John Tsang on yesterday.
Economy growing at 1 percent to 2 percent in 2016, slower than the 2.4 percent increase last year, Tsang said the lawmakers on the previous day. Growth in gross domestic product rose 0.2 percent in the fourth quarter from the previous three months, below the 0.3 percent forecast of economists surveyed by Bloomberg.
Crude oil prices fell in early trading yesterday in the Asian session, extending a sharp decline from the previous session after top exporter Saudi Arabia ruled out cutting production and industry data showed an increase in US crude inventories.
Crude oil futures prices of West Texas Intermediate (WTI) traded at $ 31.46 a barrel at 0012 GMT, down 41 cents from last. US crude oil prices have dropped 6 percent the previous day.
Saudi Arabian Oil Minister Ali al-Naimi said on Tuesday at a conference in Houston, Texas, that coordination of production cuts by OPEC and non-OPEC exporters “will not happen because not many countries that will deliver.”
At the close of trading yesterday the shares depress stock exchange was Tingyi Cayman Islands Holding Corp which fell -6.37%, shares of Li & Fung Ltd. fell -3.08%, CNOOC Ltd. dropped -3.04%, shares of Bank of East Asia Ltd / The dropped -2.79%, shares of China Mengniu Dairy Co Ltd fell -2.74%.
The movement of the Hang Seng index futures tracked down -249 points or -1.28% at 19,167.00, down from the previous closing at 19,416.00.
Technically,
Resistance: 19225 19290 19 360 Prev. High / Low: 19374/19073
Support: 19100 19010 18 860 Closed Price: 19 151
Comment: For intraday trade today suggest Sell at the level of 19240 stop loss at the level of 19295 targets at the level of 18960.
Risk Aversion Dribbling Yen
The yen gained against its currency pairs as risk aversion sentiment as well as the potential for additional stimulus from the central bank of Japan. Strengthening yen on the previous day stems from the statement of the Governor of the Bank of Japan (BoJ) this morning, which signaled their chances of additional stimulus when the central bank’s monetary meeting in the middle of next month.
Strengthening Yen is getting triggered when the price of crude oil goes down below $ 31 per barrel. Pelamahan crude participate dragging global valuation of the shares thus reinforcing the sentiment of risk aversion for two consecutive sessions.
On the other hand, some Japanese importers are buying the dollar in action buy-on-dip limit the momentum weakening Dollar-Yen. Investors also tend to be cautious in speculation ahead of the meeting of finance ministry officials and central banks of 20 developed in Shanghai at the end of this week.
Technically,
Resistance: 112.50 112.90 113.30 High / Low: 112.22 / 111.89
Support: 110.70 111.40 112.00 Running Price: 112.11
Comment: For intraday trade today suggest Buy at the level of 111.50 stop loss at the level of 111.00 the target at the level of 112.80.
Oil Stocks Tied Up
The stock is likely to remain bound to the movement of oil prices on Thursday, but the stabilization of commodity should support profits.
If equities rise, S & P 500 will have the opportunity to test its resistance level of 1,950.
“I think we get on top of that this time,” said Bruce Bittles, chief investment strategist at R.W. Baird, pointing to a recovery pushed stocks Wednesday. US average major swing from intraday drop of more than 1.5 percent to close positive.
Traders do not indicate a specific reason for a big turnaround, but the reversal in oil, settled up 28 cents to $ 32.15 per barrel indicates the commodity may be stabilizing after recent falls.
In addition to natural gas supplies, there are no news related to major industry is expected Thursday.
Oil recovered in intraday trading weekly inventory data that showed signs of decline in US production.
For drivers the stock market Thursday, “I think it’s still mainly oil. This clearly will be affected by a big surprise but most of the data that comes out tomorrow (usually) do not have a surprise that could push the market,” said Kate Warne, investment strategist at Edward Jones.
weekly jobless claims due at 08:30 ET and is expected to come in slightly above 262,000 read last week. durable goods for January was released at the same time and is projected to show a rise of 3.3 percent.
Federal Housing Finance Agency is scheduled to release its house price index for December at 09:00.
Technically,
Resistance: 32.42 32.80 33.25 High / Low: 32.24 / 31.94
Support: 31.60 31.00 30.50 Running Price: 32.09
Comment: For intraday trade today suggest dilevel Sell at the level of 32.50 stop and reversal during a break above the 32.80 level targets at the level of 31.10 and target of reversal at the level of 33.90.
