KGI Asia Commentary
Hang Seng Index rose 209 points on Wednesday
The Hang Seng Index rose 209 points or 1.18% to 17,978 on Wednesday. HSTECH rose 87 points or 2.48% to 3,626 and HSCEI rose 80 points or 1.27% to 6,455. Daily market turnover was HK$113.6bn.
S&P 500 and Nasdaq close at record highs
The S&P 500 index closed at another record high on Wednesday as a series of weak economic data boosted hopes for a sooner rate cut. The S&P 500 rose 0.5% to close at 5,534.63, a record high. The Dow Jones Industrial Average fell 24 points, or 0.1%, and the Nasdaq rose 0.8%, closing at a new high. Tesla's continued gains after a better-than-expected delivery report also boosted the broader market. The electric car maker's shares rose 6.5% on Wednesday, marking their seventh consecutive session of gains. The U.S. Energy Information Administration reported that crude oil inventories fell by 12.2 million barrels in the week ended June 28, much larger than the expected decrease of about 400,000 barrels. Supported by rising oil prices, energy stocks showed a rising trend on Wednesday. Shares of beer and wine company Constellation Brands fell more than 3% after reporting lower-than-expected first-quarter sales.
Fed says it won't cut rates until ‘greater confidence’ inflation is moving to 2% goal
Minutes of the meeting released on Wednesday showed that "participants affirmed that additional favorable data were required to give them greater confidence that inflation was moving sustainably toward 2 percent. " At the same time, before the non-farm payrolls report was released, the ADP employment report showed, private employment increased by 150k in June, lower than the revised 157k in May, consistent with the slowdown in the labor market momentum.
Hong Kong Stock Connect had a net inflow of HK3.6bn on Wednesday, of which CCB (939) had the largest net inflow, reaching HK$0.83bn; followed by ICBC (1398). Tencent (700) recorded the largest net outflow at HK$0.43bn, followed by Sensetime (20).
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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