郭啟倫

Global markets overview

2015-02-05

Hong Kong Hang Seng Index closed at 24,679.76, up 124.98 points, or 0.51%. The Shanghai Composite Index closed at 3,174.13, down 30.78 points, or 0.96%. SSE Component Index closed at 11,116.55, down 92.64 points, or 0.83%. Japan Nikkei closed at 17,678.74, up 342.89 points, or 1.98%.

Hong Kong stock market rose. Industrial and commercial shares were the best performers and led the rise. Trading volume was light, total turnover of HKD $87.3 billion was recorded.

China stock market fell. Investors chose to take profit and financial shares were hard hit.

Japan's stock market rallied sharply. Positive factors included labor cash earnings rose and individual financial company's earnings report was satisfactory.

Three major U.S. stock indexes moved separately. Dow Jones Industrial Average closed at 17,673.02, up 6.62 points, or 0.04%. Standard & Poor's 500 Index was closed at2,041.51, down 8.52 points, or 0.42%. The NASDAQ Composite Index closed at 4,716.70, down 11.04 points, or 0.23%.

U.S. stock market performed differently. Oil and bio-tech shares tumbled and dragged down the S&P 500 and the NASDAQ. The Dow rose slightly. Three major European markets moved differently. London's FTSE 100 closed at 6,860.02, down 11.78 points, or 0.17%. Paris CAC 40 closed at 4,696.30, up 18.40 points, or 0.39%. Frankfurt DAX closed at 10,911.32, up 20.37 points, or 0.19%.

The three major European markets performed separately. The retail sales of Euro zone in December was better than expected. Germany and France stock markets were benefited and climbed. U.K. stock market fell. The latest ADP figures result of U.S. is worse than last time and expected. A postponed rate hike expectation is brewing. Buying USD to hedge rate hike risk will be limited and drag down USD. USD looks bearish except against JPY. EURO should be getting a support and move upward since the retail sales of Euro zone in December was better than expected whilst Greece is having a slight chance going bankrupt. EURO looks bullish except against JPY. Investors should choose to sell JPY rather than expecting a huge rebound of JPY. JPY should be suppressed. JPY looks bearish except against EURO. USD vs.

major currencies projection

EURO/USD: Long at 1.1280, take profit at 1.1480, stop loss at 1.1240
USD/JPY: Long at 116.70, take profit at 118.10, stop loss at 116.30
GBP/USD: Long at 1.5120, take profit at 1.5270, stop loss at 1.5080
USD/CHF: Short at 0.9300, take profit at 0.9190, stop loss at 0.9340
AUD/USD: Long at 0.7720, take profit at 0.7820, stop loss at 0.7680
NZD/USD: Long at 0.7320, take profit at 0.7460, stop loss at 0.7280
USD/CAD: Short at 1.2630, take profit at 1.2520, stop loss at 1.2670

Cross rates projection

EURO/JPY: Short at 134.50, take profit at 132.10, stop loss at 134.90
EURO/CHF: Long at 1.0450, take profit at 1.0640, stop loss at 1.0420
EURO/GBP: Long at 0.7400, take profit at 0.7580, stop loss at 0.7360
GBP/JPY: Long at 177.40, take profit at 179.20, stop loss at 177.00
CHF/JPY: Long at 126.10, take profit at 127.50, stop loss at 125.70
AUD/JPY: Long at 90.50, take profit at 92.10, stop loss at 90.10

(The above displayed are just writers’ own opinions and for readers’ reference only. Financial markets are volatile and please be careful of the risks.)NOTICE

Investment involves risk. It is as likely that losses will be incurred rather than profits made as a result of buying and selling investment and financial products. Before investment, you should be aware of all the risks involved and carefully consider your investment objectives, trading experience, and level of risk acceptance. If you have any question, please seek advice from an independent professional advisor.

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