Daily Investment Strategy
Hang Seng Index fell 297 points on Monday
The Hang Seng Index closed at 17,691 points for the day, fell 297 points or 1.7%. The Hang Seng Technology Index reported at 3,486 points, down 74 points or 2.1%. The HSCEI Index fell 119 points, or 1.9%, to 6,211 points. The market turnover was HK$112.8billion.
European stocks end flat on first trading day of September
European stocks ended flat on the first trading day of September as investors considered the market outlook. The pan-European index Stoxx 600 closed down 0.04%, with stock markets and industries in various regions performing differently. Retail stocks closed down 0.77%, while telecommunications stocks rose 0.78%. On the data front, European countries released a series of final manufacturing PMI values on Monday. This includes euro zone manufacturing activity, which was at 45.8 in August, dragged down by Germany and France. Elsewhere, the UK manufacturing PMI rose to a 26-month high of 52.5 in August, which is in expansion territory.
U.S. crude oil futures opened slightly higher after three weeks of losses. Oil prices have been under pressure recently on concerns that demand from major oil importer China may slow, and that major producers may increase supply. Oil exports from Libya's main ports were suspended on Monday and output fell across the country amid an ongoing dispute between rival political groups over the management of the central bank and oil revenues.
Focus shifts to labor market
Investors are turning their attention to a crucial week for U.S. markets, with expectations high for incoming labor market data. Last month's jobs report came in worse than expected, triggering a sell-off in risk assets. The rise in job losses was largely attributed to adverse weather conditions and temporary layoffs. Investors are eager to determine whether July's data was indeed affected by these short-lived factors. These data may determine the extent of the rate cut at the next meeting, whether it is 25 basis points or 50 basis points.
Hong Kong Stock Connect had a net outflow of HK11.9bn on Monday of which Tracker Fund (2800) had the largest net inflow, reaching HK$6.76bn; followed by CSOP HS TECH (3033). Tencent (700) recorded the largest net outflow at HK$0.19bn, followed by Xiaomi (1810).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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