Hong Kong Stock Market May Run Out Of Steam On Wednesday

(RTTNews) – The Hong Kong stock market has finished higher in three straight sessions, jumping more than 700 points or 3.1 percent along the way. The Hang Seng Index now rests just beneath the 24,000-point plateau although it’s predicted to open under pressure on Wednesday.

The global forecast for the Asian markets is broadly negative after U.S. President Donald Trump ordered an end to stimulus negotiations until after the election. The European markets were up and the U.S. bourses were lower and the Asian markets figure to follow the latter lead.

The Hang Seng finished modestly higher on Tuesday following gains from the casinos and oil companies, while the financials and insurance companies were mixed.

For the day, the index advanced 212.87 points or 0.90 percent to finish at 23,980.65 after trading between 23,842.25 and 24,005.03.

Among the actives, WuXi Biologics surged 4.95 percent, while AAC Technologies soared 4.57 percent, China Mengniu Dairy spiked 3.34 percent, China Resources Land accelerated 3.31 percent, CNOOC rallied 3.26 percent, CSPC Pharmaceutical jumped 3.20 percent, Xiaomi climbed 2.88 percent, Galaxy Entertainment gathered 2.71 percent, WH Group perked 2.67 percent, CITIC advanced 1.96 percent, China Petroleum and Chemical (Sinopec) added 1.93 percent, New World Development strengthened 1.60 percent, Techtronic Industries gained 1.55 percent, BOC Hong Kong collected 1.46 percent, Sands China rose 1.35 percent, China Life Insurance skidded 0.88 percent, Power Assets increased 0.85 percent, Hong Kong & China Gas was up 0.72 percent, Alibaba sank 0.71 percent, Wharf Real Estate dropped 0.62 percent, Hang Lung Properties shed 0.49 percent, China Mobile added 0.30 percent, Industrial and Commercial Bank of China lost 0.25 percent, AIA Group gained 0.19 percent, Ping An Insurance rose 0.12 percent and Henderson Land and Sun Hung Kai Properties were unchanged.

The lead from Wall Street is broadly negative as stocks fluctuated Tuesday before heading firmly into the red following Trump’s announcement.

The Dow tumbled 375.88 points or 1.34 percent to finish at 27,772.76, while the NASDAQ skidded 177.88 points or 1.57 percent to end at 11,154.60 and the S&P 500 dropped 47.66 points or 1.40 percent to close at 3,360.

The weakness that emerged on Wall Street came in the late afternoon when Trump tweeted: “I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.”

This came on the heels of Federal Reserve Chairman Jerome Powell’s warning that U.S. economic recovery remained far from complete and that more support was needed.

Crude oil prices moved higher on Tuesday and the front-month futures contract settled with strong gains for a second successive day as supply disruptions in Norway supported the commodity. West Texas Intermediate Crude oil futures for November ended up $1.45 or 3.7 percent at $40.67 a barrel.

Closer to home, Hong Kong will see September results for its private sector PMI from IHS Markit later this morning; in August, the index score was 44.0.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source Article