The market is optimistic about Sino-US trade, and the surrounding investment atmosphere is good
In terms of Hong Kong stocks, although the external atmosphere was benefited, some heavyweight stocks were in general trend, and the fall in A-shares dragged down the performance of Hong Kong stocks. Hong Kong stocks have not taken off the market in the short term, and they have risen and fallen between 26,200 and 27,300.
The market focus falls shortly on the blue chip stocks
The market is optimistic about Sino-US trade and promotes the atmosphere of the peripheral stock market. In Hong Kong stocks, heavyweights such as HSBC (00005) and Ping An (02318) were under pressure to limit Hong Kong stocks. The Hang Seng Index was repeatedly subject to 27,000 checks, and the market focused on outstanding stocks in the short term.
Hong Kong stocks rose and fell yesterday, closing at 26,786 points, down 104 points or 0.4%; the H-Share Index closed at 10,547 points, down 22 points or 0.2%. The market turnover was HK$78.8 billion.
Hong Kong stocks were repeatedly subject to 27,000 checks. In the short-term, it is expected to continue to consolidate, and whether the market can break through upward demand and promote favorable factors.
The market is optimistic about China-US trade talks. US President Trump said that it may sign a partial trade agreement with China earlier. The US Trade Representative Office said it is studying to extend the tariff exemption for US$34 billion of Chinese goods. The Sino-US trade war has shown signs of easing, which is good for the global investment climate.
In addition, the renminbi has further stabilized. The central parity of the yuan against the US dollar was 7.0617, a record high of more than two months. Onshore Renminbi (CNY) was reported at 7.065 level last night, at a recent high. Stephen Innes, AxiTrader Asia Pacific strategist, said that if China and the US sign the first phase agreement in mid-November, the renminbi will rise above 7.05, but it will take the US to cancel the December Chinese commodity tariff.
The atmosphere in the periphery is good, and the risk appetite is rising. However, Hong Kong stocks are subject to internal factors. As a result, there was no surprise in the performance of heavyweight stocks. HSBC’s quarterly results were inferior and management’s guidance was prudent. The stock price has fallen back in the past few days. It is expected that it will be difficult to reproduce the short-term in the short term. Ping An’s share price was under pressure due to lower-than-expected growth in new business value.
Tencent’s stock price is wary
In addition, the stock prices of Tencent (00700) and China Mobile (00941) are weak, which limit the upside of Hong Kong stocks. Among them, investors should pay attention to Tencent’s trend. Once it further falls below the 312 level, that is, the bottom support since May, it will further weaken and drag down the market.
In the market outlook, the market is watching the US interest rate and the policy direction of the Fourth Plenary Session of the Mainland. In terms of A-shares, the PBOC netted RMB 250 billion yesterday. It did not operate in the medium-term loan facility (TMLF) as the market did. The Shanghai Stock Exchange fell 0.9% yesterday and closed at 2,954 points. It is expected to continue to rise and fall in the 2900-3000 area.
In the US stock market, the S&P 500 index broke the top on Monday and the Dow also approached historical highs. The market expects the US to cut interest rates this week. According to CME market monitoring tool FedWatch, the market estimates that the current round of interest rate cuts of 0.25 percent is as high as 97.3%. However, investors need to be close to the comments of Fed President Powell, such as making hawkish speech or affecting the performance of US stocks.