Peripheral wind and waves at the end of the night market slump 320 points Morgan Stanley: waves or retreat for several weeks 31900 off
Hong Kong stocks or facing the first wave of adjustment this year! Affected by the volatility of the U.S. Treasury and the rebound of the U.S. dollar, the two banks backed by the overnight overnight break-even of the Hong Kong dollar and the worries of capital shortage, the first round of overvaluation of the market and the first test of the golden ratio and the 20-day moving average (last week’s point of 31,844).
Foreign Morgan Stanley said from the fundamentals and technical aspects of Hong Kong stocks, are expected to adjust the period will last for several weeks, but the medium to long term optimism, the Hang Seng Index expected 10% on the horizon. Guotai Junan Chinese capital investors are advised to keep abreast of (1) Trump’s State of the Union, (2) the interest rate movement of the Reserve Board, (3) the performance of the United States large-scale network stocks, capture the whereabouts of the market outlook.
US debt hovered around 2.7% in nearly 4-year high, affecting the risk appetite for investment in the US stock market. US stocks fell more than 300 points in the early stages. Hong Kong stocks swelled 320 points in late February, falling by 273 points to 32,382 points at 0:00 this morning. Taking into account the overall blue chip stocks listed in the United States ADR performance, equivalent to the market fell 141 points.
Focused on Trump’s speech worries Sino-US friction
Jonathan Garner, head of Equity Asia and emerging markets equity strategy, wrote a report that Hong Kong stocks may adjust for several weeks and cites 10 reasons including the Lunar New Year approaching, the weaker market momentum and the emergence of Hong Kong stocks for more than two years Overbought half the worst technology; Market doubts over the trade friction between China and the United States and so on.
Earlier this morning, U.S. President Trump published his first State of State address in Hong Kong. The world is paying special attention to its trade proposals. Cheng Jiawei, strategist at Guotai Junan Securities Co., believes that Trump’s remarks will be the focus of his short-term focus. He will also pay attention to the latest Fed guidelines on inflation and interest rate movements and measure the trend of U.S. exchange and Hong Kong stocks. Federal Reserve Chairman Janet Yellen will announce the result of the last meeting during his term early Thursday morning in Hong Kong.
Port interest rates rose to 0.939% Hong Kong exchange rate remained stable
As soon as the result of the decision of the Reserve Board was published shortly, the Hong Kong dollar interest rate continued to rise for two consecutive days. Of which, the overnight overnight interest rate rose 73 pts (100 pips 1%) to 0.939% overnight. Hong Kong exchange rate is relatively stable, falling at 7.81 throughout the day. Some traders said that there is no sign of any outflow of capital from Hong Kong yet. The increase in interest rate is limited to bank liquidity deployment only if the future surge in the interest rate hikes to 1.2% Last year’s high, or little impact on the asset market.
Lai Chun-mei, senior market analyst for the currency and interest rate trading arm of East Asia (00023), also pointed out that the current level of the rate of demoversion reflects the majority of monthly structural factors and is expected to remain high before the Lunar New Year. Lin Junhong, head of Shang Shang Research Institute, said that the recent borrowing market is not yet tense. Large banks still have to be demobilized. Interest rates rose because of the monthly liquidation of small and medium-sized Chinese banks.
Hang Seng Index closed at 32607 points, down 359 points and turnover was 173.4 billion yuan. Guo Qiang Sheng reiterated the Hang Seng Index 31500 points target in the report, but he also integrated the bank’s latest target price of blue chips and weighted calculation, under the basic conditions, the Hang Seng Index long-term may look 35957 points, compared with yesterday’s close of 10.3% Potential increase.