The Fed hinted that interest rates will be cut in July. Hong Kong stocks rose two consecutive points to 29,000 points.
Fed Chairman Powell “released pigeons", suggesting that interest rates will be cut in July and Hong Kong stocks will rise. After the Hang Seng Index opened 143 points higher, it once pulled up 378 points to 28,582 points. It closed at 227 points or 0.81%, up to 28,431 points, rising for two consecutive trading days. The HSCEI rose 82 points or 0.77% to 10,784 points. The main board turnover was 67.4 billion yuan.
Powell yesterday paved the way for a rate cut this month. At the same time, the minutes of the Fed’s recent meeting showed that policymakers are increasingly worried that although the US-China trade war has not directly curbed economic growth, many factors are combined, and it is likely to depress the United States. The economic growth rate and inflation rate, which end the economic expansion, the Fed is getting closer to cut interest rates to prevent problems before they happen.
Powell’s “Flying Pigeon" property stocks are doing well
Real estate stocks sensitive to interest rates were generally well established yesterday. Sun Hung Kai Properties (016), Henderson Land Development (012), New World Development (017) and Hang Lung Properties (101) rose 1% to 2%. The Property Management Unit continued to have “hype”, with the optimistic service of Life Service (3319) up 10%, Kaisa Property (2168) and Yongsheng Life Service (1995) up 4% and record high.
Heavyweight AIA (1299) and CCB (939) both rose more than 1%. Tencent (700) performance repeatedly, after hitting a high of 360.8 yuan, once fell 0.2% to 356 yuan, closing only 0.1%, to 357.2 yuan. HSBC (005) rose 0.4%; China Mobile (941) rose 0.07%. Mobile phone equipment unit Sunny Optical Technology (2382) soared in the market, rising 3.2% for the best performing blue chip stocks; AAC Technologies (2018) hit nearly 1%.
Yao Yaohui, director of the research department of Yaocai Securities, pointed out that many stocks rebounded yesterday. However, the performance of A-shares was not satisfactory, and the rebound of Hong Kong stocks was restricted. Without the support of special favorable factors, the Hang Seng Index will have a major breakthrough. Short-term is expected to compete between 28,000 and 29,000.
However, Sino-US trade negotiations are developing positively. China’s Ministry of Commerce spokesperson Gao Feng revealed at the latest regular press conference that China and the United States will resume consultations. The market estimates that the Hang Seng Index will have a chance to regain the 29,000 level by implementing negotiations in the short term.
“Three barrels of oil" follows the oil price
In terms of individual stocks, Brent crude oil rose above US$67. “Three barrels of oil” was speculative. CNOOC (883) and PetroChina (857) rose about 2%, and Sinopec (386) rose more than 1%. Peng Weixin, head of the research department of Jinghuashan, expects that crude oil prices are unlikely to maintain a long-term uptrend. Investors who intend to absorb oil stocks should choose oil stocks based on upstream business. Among them, CNOOC Limited can be used for short-term operation, and the target is earned at a high level of nearly 15 yuan.
In just 4 days, ANTA Sports (2020) was hit by a hollowing out agency for the third time. This time, Lishui is mainly concerned with the figures of Anta’s brand FILA and questions about the ownership of the FILA brand. However, the report did not have an impact on Anta’s share price. It closed at nearly 1%, closing at 51.3 yuan, with a turnover of 690 million yuan.
In addition, the Securities and Futures Commission publicly criticized China Mind Asset Management (Hong Kong) for violating the Code on Corporate Acquisitions and Mergers because it did not disclose the transactions conducted by Allied Holdings (now known as Crown International Holdings (1629)). According to the Securities Regulatory Commission, between August 2 and October 30 last year, Zhongmin Assets executed 26 transactions in the offer period of the shareholder value fund during the offer period, but did not follow the Takeover Code. The rules disclose relevant transactions.