Shanghai: SSE Composite Index (.SSEC) declined after the Federal Reserve’s chairman Jerome Powell suggested the quarter-point rate cut on Wednesday was a one-off

Shanghai: SSE Composite Index (.SSEC) declined after the Federal Reserve’s chairman Jerome Powell suggested the quarter-point rate cut on Wednesday was a one-off

Shanghai: SSE Composite Index (.SSEC) declined after the Federal Reserve’s chairman Jerome Powell suggested the quarter-point rate cut on Wednesday was a one-off

Asian markets mostly declined on Thursday after the Federal Reserve’s chairman Jerome Powell suggested the quarter-point rate cut on Wednesday was a one-off.Meantime, the US-China trade talks in Shanghai ended on Wednesday with few signs of progress, while both sides agreed to meet in September again.

Hong Kong’s Hang Seng Index (HSI) fell 0.8%. The Shanghai Composite Index (SHCOMP)also lost 0.7%. The two indexes deepened early losses after a private survey showed China’s manufacturing sector contracted for a second straight month.

Here are some of the other big talking points on Asian markets.

  • China’s factory activity contracted again in July, according to a private survey on Thursday. The Caixin China Manufacturing Purchasing Managers’ Index, aclosely watched gauge of China’s manufacturing sector, came in at 49.9 for July. The figure was slightly better than market expectations and up from June’s 49.4, but still below the 50 mark that separates contraction from expansion.
  • On Wednesday, China’s official manufacturing PMI came in at 49.7 for July, indicating the third consecutive month of contraction. The official PMI reflects more big businesses and state-owned enterprises, while the private Caixin/Markit PMI surveys a bigger number of private businesses.
  • Hong Kong’s Monetary Authority, the city’s de facto central bank, cut the base lending rate by 25 basis points on Thursday, following the Fed’s move overnight. It was the authority’s first rate cut since 2008. Hong Kong’s monetary policy moves in lockstep with the Fed’s as the city’s currency is pegged against the dollar.
  • Hong Kong announced Wednesday its economy grew 0.6% for the second quarter, weaker than markets had expected, hurt by the US-China trade war and a global economic slowdown. Analysts warned the slowdown could deepen if the city’s massive protestscontinue.
  • South Korean exports fell 11% in July, the eighth straight monthly decline, official statistics showed Thursday. Semiconductor exports dropped 28%. Samsung Electronics (SSNLF)dropped 0.2% in the morning trade, following a more than 2% decline on Wednesday.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 2,990.45.

The projected lower bound is: 2,827.76.

The projected closing price is: 2,909.11.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 39.6728. This is not an overbought or oversold reading. The last signal was a sell 1 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 44.08. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 58 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -65. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 4 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -23.740 at 2,908.766. Volume was 41% below average (neutral) and Bollinger Bands were 62% narrower than normal.

Open     High      Low     Close     Volume___
2,920.8512,927.3422,901.7502,908.76614,238,981,120

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close: 2,925.09 2,929.69 2,820.37
Volatility: 13 18 26
Volume: 14,594,790,400 18,440,216,576 22,694,658,048

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

SSE COMPOSITE is currently 3.1% above its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .SSEC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .SSEC and have had this outlook for the last 12 periods.

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