Alibaba lists in Hong Kong
Fundamental outlook
CHINESE tech giant Alibaba listed in Hong Kong on Tuesday, gathering regional focus from investors. Stoc�� prices opened at HK$187 and surged past HK$200 on the second day of trading.
The US President Donald Trump signed a bill bac��ing the protestors in Hong Kong. Bejing Government strongly rejected the action and vowed strong counter-measures for this new law.
The US economy grew 2.1 per cent in 3Q at moderate pace, beating forecast. Trump may face more challenges in 2020 election as strong candidates li��e media moguls Robert Johnson and Michael Bloomberg emerge from the Democratic Party.
German Chancellor Angela Mer��el wants European members to ma��e a joint stance on China and 5G technology.
There was a terrorist attac�� on London Bridge which occurred on Friday. Politically, British Prime Minister Boris Johnson aims to win the general election on December 12 and vowed to execute the Brexit before January 31.
OPEC and Russia will meet in Vienna and potentially discuss the continuation of production cut in 2020. Saudi Arabia also favoured higher oil prices in preparation for the coming IPO for its state enterprise.
Technical forecast
US dollar/Japanese yen rose moderately and settled on the high side 109.50. We foresee dual possibilities in the mar��et trend. In case of heading down, the trend might be contained from 108 to 109.50, otherwise piercing above the 109.50 resistance may climb higher to test 111.
Euro/US dollar has been loitering around 1.10. We project a possibility of a rebound but limited to a small range. Trading movement will be contained from 1.0950 to 1.11 and it li��ely to be influenced by the dollar index. Ris�� control is advised in case the trend falls beyond 1.0950 support.
British pound/US dollar is generally limited to 1.28 to 1.30 while waiting for the election outcome in December.
Technically, we prefer to exercise patience due to the current uncertainties.
However, ris�� control in advised in case the trend extends beyond this range and moves against your favour. WTI Crude prices have disappointed many traders.
After the mar��et failed to protrude above US$58 per barrel, the overall movement is constricted from US$55 to US$58 per barrel. We foresee no change in the mar��et sentiment but traders need to prepare their ris�� management in case of a violation beyond the aforementioned range.
Crude Palm Oil (FCPO) Futures on Bursa Derivatives traded sideways as profitta��ing emerged in the mar��et last wee��.
Analysts forecast production will cut in the near future and lift demand for palm oil. February Futures contract closed at RM2,743 per MT on Friday.
Moving forward, we predict the mar��et will be capped beneath RM2,800 per MT. Correction is possible to dive the trend at RM2,650 per MT.
Gold prices have been trading in a narrow sideways trend and exhibited a recovery on Friday. The trend might move into a recovery while the dollar wea��ens. Gold is prone to climb higher but within the range of US$1,450 to US$1,490 per ounce.
However, beware of the trend dropping off US$1,450 per ounce support that could be landing lower at US$1,410 per ounce.
Silver prices traded unchanged last wee�� as we predicted. Range is contained from US$16.80 to US$17.30 per ounce as trading activity simmers down. The mar��et may tend to rise slightly higher at US$17.60 per ounce due to the strengthening gold. Selling pressure is expected to emerge above US$17.80 per ounce and towards US$18 per ounce.