Sunday, November 4, 2012

5 Important Things Before the Open Market

5 Important Things Before the Open Market. 2 month high to touch USD against a basket of currencies on Monday after U.S. jobs data released last week that emphasizes the fundamental strength of the U.S. economy. EUR now at 1.2828, still fails to address the gap that has opened weaker early Asia-Pacific trading session, only two days before the U.S. presidential election. The euro has weakened more than 1.6% of the value of the weekly opening Monday. Starting this week, the Nikkei - Japan observed decline in negative territory but still thin on the psychological 9000 because fewer investors away from risky activities before the advent of the results of the American election. After opening in negative territory, the Hang Seng index will likely trade depressed all day because the other major Asian indices dragged the now weakened and Wall St. which sank at the weekend. Performance auto shares had fallen sharply among Hyundai Motor dropped 4.9% to KRW204, 500 and Kia Motors Corp. which fell 4.8% to KRW57, 600, making KOSPI fell 0.3% to 251.20.

Malaysian palm oil palm oil contract fell by more than 3% to its lowest level in more than three weeks Monday, as traders continued to fret over high inventories in Malaysia. The main producer of crude oil, Saudi Arabia has raised oil prices for buyers from Asia in November as much as 20 cents, said the government-owned company, Aramco.

German Chancellor Angela Merkel said the European sovereign debt crisis will last at least 5 years or more.
Sharp Corp., the worst performing stock, move down in Tokyo after estimating a loss of $ 5.6 billion and said there were a number of questionable debt with efforts to survive. The credit status of the company is included in a "junk" by Fitch Ratings.


Asia Market Despite Negative Pretty Optimistic

Until the afternoon session at the beginning of the week (Monday, 05/11) in general Asian market still appeared to move in the negative territory mainly because of the attitude carried over selling investors who do this weekend including the selling happens on Wall Street. And investors seem to reduce activity at risk as market participants are now looking forward to the certainty of the U.S. presidential election this week. Even data manpower - Non-farm payrolls and U.S. factory orders that appear improved above expectations, unable to stem the negative market sentiment for profit-taking.

In Asia, the Nikkei - Japan appears corrected to 9000 broken down psychologically as investors dumped riskier assets ahead of the emergence of a number of the results of the American election. But the Nikkei was able constrained due to weakening the yen weakened and Toyota Motor Corp. stock rebounds. that shot up to 2.2% after the auto giant NHK said it plans to increase its operational profit forecast.

While the exchanges in Hong Kong's Hang Seng also degraded because dragged other Asian indexes fell and Wall St. now. which sank at the weekend. However, a number of buying stocks that look cheap as possible will have the stock color that will help limit the further weakening of the index. Investor sentiment today was quite positive after the data of non-manufacturing activity soared to the level of China's PMI 55.5 in October, from 54.3 previously, further confirmed that China's economy growing gradually recover.

Stimulants Need Strong Euro

The EUR / USD this morning activities are still in the range of 1.2824. The euro does not seem to have enough power to stay away from low levels. Exchange rate recorded has fallen 1.6% from current levels the market opened early last week. The weakening euro came two days before the U.S. presidential election.

Valeria Bednarik, chief analyst at Fxstreet.com said "Momentum is bearish if the currency of view the one hour chart still looks strong despite the currency has moved in oversold level. While 4 hour chart also confirms currency movements still tend to be weak, "explains the analyst. "Aussie if the key support level has reached the level 1.2800 at 1.2745 (38.2% retracement) and 1.2610. While the strong resistance level at 1.2880 Aussie. " Support levels at 1.2790 and 1.2745 while resistance levels at 1.2840, 1.2880, and 1.2910.

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