KGI Asia Commentary
Hang Seng Index fell 58 points on Tuesday
The Hang Seng Index closed at 17,511 points for the day, down 58 points or 0.3%. The Hang Seng Technology Index fell 19 points, or 0.5%, to 3,498 points. The HSCEI Index fell 30 points, or 0.5%, to 6,195 points. The market turnover was HK$74.5 billion.
S&P 500 and Nasdaq ended 8 consecutive days of gains, rebound paused
U.S. stocks edged lower on Tuesday, ending a winning streak as investors failed to capitalize on the market's recent recovery. The Dow Jones Industrial Average fell 61.56 points, or 0.15%, to 40,834.97 points. The S&P 500 fell 0.2% to 5,597.12 and the Nasdaq fell 0.33% to 17,816.94. Energy stocks fell after oil prices gave up earlier gains due to fresh uncertainty over a ceasefire in Gaza. Valero Energy Corp., APA Corp. and Marathon Petroleum Corp. were among the biggest losers in the energy sector. Shares in home improvement retailer Lowe's fell 1% after the company cut its annual profit and sales forecast, signaling little chance of a recovery in home improvement demand in the second half of the year. Shares of cybersecurity company Palo Alto Networks rose more than 7% after the company reported fourth-quarter revenue and net income. Eli Lilly and Company shares rose 3% to hit a new 52-week high after a late-stage study of the company's drug tirzepatide showed the weight-loss treatment reduced the risk of type 2 diabetes in obese adults. The risk is reduced by 94%.
Market awaits clues about rate cut
Investors this week are waiting to see the FOMC minutes, as well as Fed Chair Jerome Powell’ speech at the annual Jackson Hole Economic Symposium. Wall Street is looking for clues about the Federal Reserve's next FOMC meeting. According to CME's Fed Watch Tool, federal funds futures are implying a rate cut is certain, with the only debate being whether central bankers will lower rates by a quarter point or a half point in September.
Hong Kong Stock Connect had a net inflow of HK1.79bn on Tuesday of which Tracker Fund (2800) had the largest net inflow, reaching HK$0.48bn; followed by Xiaomi (1810). CNOOC (883) recorded the largest net outflow at HK$0.17bn, followed by CCB (939).
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