KGI Asia Commentary
Hang Seng Index fell 293 points on Tuesday
The Hang Seng Index fell 293 points or 1.7% to 17,112 on Tuesday. HSTECH fell 95 points or 2.5% to 3,759 and HSCEI fell 98 points or 1.7% to 5,861. Daily market turnover was HK$84.6bn.
Dow closes higher, but unable to avoid 3rd straight month of losses
The Dow closed higher on Tuesday on the final trading day in October as investors digested a raft of corporate earnings reports, but stocks were unable to avoid a third straight day of losses for the first time since March 2020. The S&P 500 rose 0.65% to 4,193.80 points, and the Nasdaq rose 0.48% to 12,851.24 points. The Dow Jones Industrial Average rose 123.91 points, or 0.38%, to 33,052.87 points. Caterpillar shares fell nearly 7% as the industrial equipment maker's order backlog shrank, raising concerns about slowing demand for equipment and offsetting the company's highest-ever third-quarter revenue and profit. JetBlue Airways also came under selling pressure due to weaker-than-expected quarterly results. The airline lowered its annual financial forecast, citing "a challenging operating environment." The company's shares fell about 10%. Wolfspeed's stock price rose 22% after announcing quarterly results, driving gains in the chip sector. But some on Wall Street remain wary of the stock, awaiting further visibility on performance of its Mohawk Valley chip-making factory, which was opened last year. AMD reports quarterly results after the market close.
Consumer confidence index has fallen for three consecutive months; the market waits to see the FOMC decision
The consumer confidence index fell for the third consecutive month in October. Dana Peterson, chief economist at The Conference Board, said on Tuesday: Write-in responses showed that consumers continued to be preoccupied with rising prices in general, and for grocery and gasoline prices in particular,” Meanwhile, the Federal Reserve will announce the results of its interest rate meeting. CME's Fed watch Tool shows there is a greater than 99% chance that the Fed will keep interest rates at current levels.
Hong Kong Stock Connect had a net inflow of HK$1.9bn on Tuesday, of which Meituan (3690) had the largest net inflow, reaching HK$0.20bn; followed by PICC P&C (2328). Tencent (700) recorded the largest net outflow at HK$0.26bn, followed by CNOOC (883).
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