Hong Kong Exchanges Closed Down; Start Energy Stocks Move Up
At the end of trading on the Hong Kong stock exchange on Monday posted a benchmark index closed with significant attenuation. Ending trading on Monday afternoon Hong Kong ignore the rise in Shanghai and followed the negative sentiment that visited the Asian stock markets.
Leading stocks appear to have decreased significantly. Cheung Kong fell sharply by 2.90 hkd be 128.80 hkd this afternoon. CLP Holdings sluggish at 0:55 hkd be 65.00 hkd. HSBC declined 1:00 hkd be 74.15 hkd.
Unexpectedly energy stocks seem to have movement were mixed and began to rebound in spite of the drop in crude oil prices. Sinopec decreased 0:01 6:02 hkd be hkd. CNOOC posted hkd be strengthened by 0:10 10:16 hkd. PetroChina gained 0.18 hkd be 8:27 hkd.
At the end of trading Monday, the benchmark indices in Hong Kong stock market closed with a sharp slowdown. Spot index closed lower zinc hangs by 221.35 points or 0.95 percent and closed paada position 23027.85 points.
Analyst estimates that on Tuesday’s trading Stock Exchange of Hong Kong will be the performance of the stock market the United States and Europe. Important data from the United States to be released is the Empire State Manufacturing Index and Industrial Production.
Technically, the index on the trading session today, Tuesday (16/12) likely to weaken, test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume tends to rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 22750 and 22700. If it fails in 22801, we then estimated the index tends to retest the resistance level of 22840 and continued until the possibility of being in the 22890 area.
USD Appreciated Ahead of the FOMC Meeting
The US dollar appreciated versus the euro on Monday, on expectations that the Federal Reserve will take less dovish stance at the end of its policy meeting. The Fed will also highlight the possibility of signs of improvement in the US economy, including the labor market.
While the Euro continues to be burdened by speculation that the European Central Bank will start buying government bonds in 2015. More than 90% of respondents in a monthly survey predicts the ECB will start to buy bonds on a large scale in the next year, up from last month’s survey of 57 %.
“The market braced for a less dovish FOMC this week,” said Martin Schwerdtfeger, forex strategist at TD Securities in Toronto. “Higher interest rates could encourage investment flows into the US, and the favorable dollar.”
Technically, the trading session today, Tuesday (16/12), the pair Euro-dollar likely to move in the negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.2400 and 1.2350 maximum. Meanwhile, if the Euro is able to break and hold above 1.2440, then the other alternative scenario that Euro chance to test resistance in 1.2470 and 1.2520 area.
The Approaching of US Rate Hike, Gold Falling
Market participants believe that the deadline for US rate hike imminent, no wonder they are increasingly crowded sell gold and pushed the price of gold fell and ended at its lowest in five weeks. Gold for February delivery fell 1.2 percent to $ 1,207.70 per ounce.
In the third quarter, the price of gold fell by 8.4 per cent in line with the rise in the US economy. In a regular meeting of the Federal Reserve, the Federal Reserve for two days starting tomorrow, the market believed that the officials will debate the issue of time to raise interest rates since 2008 have been cut up to now close to zero percent.
Last month, the price of gold dropped to the lowest prices in the last four years. The fall of the price of gold is accompanied by a rise in the stock market and the drop in crude oil prices. Full gold prices fall more dominant triggered improving US economy and the latest poll on Fed officials are optimistic rise in interest rates will be in 2015. Some investors are not sure yet, still waiting for the results of the Fed meeting to ensure further market direction.
Certainty rise in US interest rates makes the market prefers currency assets and gold stocks than as a means of investment. Stronger US dollar itself visible from the increase in the US dollar index rose 0.3 percent over 10 other major currencies. Even on December 8, yesterday, the US dollar was able to occupy the highest position in the last five years. The strengthening of the US dollar gold price hit as a result.
Gold prices rose 70 percent earlier in the period December 2008 to June 2011 after several central banks implement a loose monetary policy that enlarges the money supply, pushing up inflation – finally in 2013 to be down 28 percent. This is the largest decline in the last thirty years, by improving US economy.
In the last week, gold prices had reversed rose 2.7 percent, the highest rise since June. This coincided with the dollar and profit taking stock exchanges, by making use of the fall in world oil prices.
Technically, gold in today’s trading session on Tuesday (16/12) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Bands that began to widen, thus giving impetus to the gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1190.50 and re-test the maximum level of 1185.73. However, if the price of gold is able to break and hold above 1196.90, the estimated price of gold could potentially test the 1199.40 and 1205.72 resistance.
