The Hong Kong stock market has experienced a downturn for five consecutive sessions, shedding over 800 points or approximately 4.6 percent in that period. The Hang Seng Index currently hovers just below the 17,200 mark but is anticipated to stabilize on Tuesday. The global outlook for Asian markets is optimistic due to expected bargain hunting and positive projections for interest rates. Both European and U.S. markets have closed with significant gains, suggesting a similar trend for Asian bourses.On Monday, the Hang Seng Index ended sharply lower, weighed down by losses in financial, property, and energy sectors, while technology stocks showed mixed performance. The index dropped 247.34 points, or 1.42 percent, closing at 17,196.96, after fluctuating between 17,067.45 and 17,305.91. Notable movements included Alibaba Group sliding 1.88 percent, Alibaba Health Info down 1.38 percent, and ANTA Sports dipping by 0.57 percent. Others like China Life Insurance fell 2.43 percent, China Mengniu Dairy 3.41 percent, China Resources Land 3.85 percent, CITIC 1.34 percent, and CNOOC dropped 3.83 percent. CSPC Pharmaceutical slumped 2.31 percent, Galaxy Entertainment 1.54 percent, and Haier Smart Home plunged 4.71 percent. Hang Lung Properties decreased by 2.49 percent, Henderson Land by 1.68 percent, Hong Kong & China Gas eased by 0.32 percent, Industrial and Commercial Bank of China dipped 1.19 percent, and JD.com tumbled 2.97 percent. Lenovo and Li Auto also saw declines of 1.83 percent and 1.64 percent respectively, while Li Ning retreated 2.95 percent, and Meituan slipped 0.59 percent. New World Development was down 0.44 percent, though Techtronic Industries gained 0.39 percent, Xiaomi Corporation added 0.43 percent, WuXi Biologics surged 2.53 percent, and CLP Holdings remained unchanged.Wall Street’s momentum was positive on Monday, with major averages opening higher and sustaining their gains by the closing bell.The Dow Jones Industrial Average surged 484.18 points, or 1.20 percent, to close at 40,829.59. The NASDAQ Composite rallied 193.77 points, or 1.16 percent, finishing at 16,884.60, and the S&P 500 climbed 62.63 points, or 1.16 percent, to end at 5,471.05.This rally was driven by traders looking to capitalize on stocks at lower valuations following last week’s significant drops, which had pushed the NASDAQ to its lowest level in nearly a month. Improved sentiment was also buoyed by optimism that the Federal Reserve will cut interest rates later this month, notwithstanding ongoing concerns about the U.S. economic outlook.According to CME Group’s FedWatch Tool, there is currently a 73 percent probability that the Fed will reduce rates by 25 basis points, and a 29 percent chance of a 50 basis point cut.Additionally, oil prices advanced on Monday due to potential weather-related production disruptions in the Gulf of Mexico and OPEC’s decision to postpone a planned production increase initially slated for October. West Texas Intermediate (WTI) crude oil futures for October delivery rose by $1.04, or 1.54 percent, settling at $68.71 per barrel.The material has been provided by InstaForex Company – www.instaforex.com
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