PT Equityworld – In early trade Hong Kong stock exchange on Tuesday (10/01), the Hang Seng Index opened higher, when it was observed moving up 124.60 points or 0.55 percent at 22683.29. Positive movement Hang Seng index triggered a weakening US dollar and China’s stock rally Intime Retail Group.
The US dollar weakened due to lack of major fundamental driver making it vulnerable to the action of the safe-haven market. Since the European trading market is likely to take action to hunt down the safe haven yen and the euro currency, and gold. This action was triggered by the political situation in Europe after the statement of the British Prime Minister Theresa May who said they would lobby the back of trade cooperation with European countries after the exit of the membership of the European Union.
The US dollar pullback assuage concerns the flight of funds abroad from Hong Kong.
Meanwhile, the Chinese department store operator Intime Retail Group rallied 38 percent in the opening Tuesday after announcing that the mainland’s largest online retailer Alibaba seeks to take China Intime Retail Group. Alibaba is the owner of the South China Morning Post.
While the movement of the Hang Seng index futures this morning observed rose 137.00 points or 0.61 percent at 22,710.00, up from the previous closing at 22,573.00.
Vibiz Analyst Research estimates that the movement’s Hang Seng index further positive move if the US dollar continues to weaken, also pushed producer prices rising China. Technically, the Hang Seng Index will move in the range of 22.246 to 21.771 Support and Resistance range from 23.217 to 23.705.
also read our other article U.S. stock exchanges closed mixed at the end of trading Tuesday (10 January 2017) | PT Equityworld