News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Notice

BoE Chief Econimist (Hawk) is to Step Down From BoE After June Meeting

Real Time News
  • When is Kodak going to get into the SPAC game? Bitcoin mining pivot in 2018 and Vaccine production pivot in July 2020. Any day now...
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 2.19% Gold: 0.74% Oil - US Crude: 0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/QNPEEysdEK
  • The Dow Jones, Nasdaq 100 and S&P 500 will look to the arrival of earnings season for influence. Get your #equities market update from @PeterHanksFX here:https://t.co/96vOGDYq2K https://t.co/xUE3PxGz9B
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.41%, while traders in France 40 are at opposite extremes with 75.87%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/akuL5mmcvW
  • Pfizer states it can deliver 10% more vaccine doses to the US by the end of May $PFE $SPX $NDX $RUT
  • Had the pleasure of sitting down with @GuyAdami and @RiskReversal for another episode of The Macro Setup to discuss $GLD $BTC and $SPX ahead of earnings season and the Coinbase IPO Watch here - https://t.co/6usEdkA5om
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: France 40: 0.41% Germany 30: 0.06% Wall Street: 0.00% FTSE 100: 0.00% US 500: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/0qT3sH7l3i
  • #Bitcoin breaks out to fresh all-time highs as investors cast an eye to the long awaited Coinbase IPO #BTC $BTCUSD https://t.co/qwxlzkGa9C
  • NY Fed Treasury purchase schedule remains unchanged - BBG
  • Silver posting a strong session, now up 2.3% on the day. In recent trade, silver has struggled to break above the 50-day EMA $XAG $USD https://t.co/BetnXeKLj3
Hang Seng Gains Before US-China Talks, Gold Prices Stabilize

Hang Seng Gains Before US-China Talks, Gold Prices Stabilize

Margaret Yang, CFA, Strategist

HANG SENG INDEX, GOLD, CRUDE OIL PRICE OUTLOOK:

  • Hong Kong’s Hang Seng index climbed a second day to 25,300, led by financial sector
  • Gold prices attempted to stabilize around US$ 1,910 – the 61.8% Fibonacci retracement
  • Crude oil prices advanced on vaccine hopes, improving data

Hang Seng Index Outlook:

Hong Kong’s Hang Seng Index stock benchmark advanced for a second day as financial stocks rallied. Sectoral rotation was clearly observed in the Hong Kong market these days, as investors switched out from technology stocks into banking names ahead of the review of the US-China phase one trade deal. As Tencent’s WeChat and other Chinese apps will likely be put on the table of these discussions, risk appetite is likely to remain weak until the political skies clear.

Tencent – the largest listed technology company in Hong Kong – has announced better-than-expected 2Q earnings after market close on Wednesday, bringing up hope of a stock price rally today. However, the upside is perhaps limited by a technical resistance at HK$ 560 and the risk of a potential US ban on WeChat.

Sector-wise, properties (+2.18%) was the best performing segment on Wednesday, while financials (+1.96%) contributed two thirds of the index’ gain. HSBC (+4.84%) and AIA (+3.03%) were the best performing index components.

Besides, Japan’s PPI and Australia’s jobs report are the key macroeconomic events on Thursday.

Hang Seng Index Sector performance 12-8-2020

Hang Seng Gains Before US-China Talks, Gold Prices Stabilize

Source: hsi.com.hk

Technically, the Hang Seng index has broken the ‘descending channel’ from the upside as shown in the chart below. It has since opened the room for more upside towards 25,200 and then 25,800 – the 50% and 38.2% Fibonacci retracements, respectively. Two bullish candle sticks formed this week showing strong upward momentum, which may drive the index higher towards 25,800 in the days to come.

Hang Seng IndexDaily Chart

Hang Seng Gains Before US-China Talks, Gold Prices Stabilize

Gold Price Outlook:

Gold prices stabilized at around US$ 1,910 following its biggest two-day selloff since 2013 on Wednesday. Favorable stock market sentiment and vaccine hopes are dampening the demand for safety, and thus may have catalyzed the selloff in gold and silver this week. Yields on the 10-year US treasuries rose to 66 bps – a one month high. Higher treasury yields reflect rising inflation prospects, which may lead to a more hawkish-biased Fed down the road. These are putting weight on anti-fiat precious metals too.

Technically, gold prices have reached the 76.4% Fibonacci retracement level at US$ 1,870 before bouncing back to US$ 1,943 – the 50% Fibonacci retracement. The price may start to stabilize between US$ 1,910 and US$ 1,942 today after two, extremely volatile trading sessions.

Gold PriceDaily Chart

Hang Seng Gains Before US-China Talks, Gold Prices Stabilize

Crude Oil Price Outlook:

Technically, the WTI crude oil prices have risen to a key resistance level at US$ 42.8 – the 61.8% Fibonacci retracement level. In the Fibonacci study, 61.8% is the so called ‘golden ratio’ and thus it usually serves as a key resistance or support level in trading. Breaking above this level will likely open up room for more upside towards US$ 48.5 and then US$ 51.7.

WTI Crude Oil PriceDaily Chart

Hang Seng Gains Before US-China Talks, Gold Prices Stabilize
Building Confidence in Trading
Building Confidence in Trading
Recommended by Margaret Yang, CFA
Don’t give into despair, make a game plan
Get My Guide

--- Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Comments section below or @margaretyjy on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES