Daily Investment Strategy
Hang Seng Index fell 120 points on Wednesday
The Hang Seng Index closed at 17,391 points for the day, down 120 points or 0.7%. The Hang Seng Technology Index reported at 3,434 points, down 63 points or 1.8%. The HSCEI Index fell 53 points, or 0.9%, to 6,141 points. The market turnover was HK$93.8billion.
S&P 500 ends higher as Fed meeting minutes boost hopes of September rate cut
The S&P 500 index closed higher on Wednesday as minutes from the Federal Reserve's July meeting boosted expectations for a rate cut next month, overshadowing concerns about the economy following softer labor market data. The Dow Jones Industrial Average rose 55 points, or 0.1%, the S&P 500 rose 0.4% and the Nasdaq Composite rose 0.6%. Shares of Target Corp. rose 11% after the large retailer raised its annual profit forecast and second-quarter comparable sales exceeded expectations as consumers were attracted by low-priced groceries and necessities. By comparison, department store chain Macy's shares fell 13% after it reported quarterly revenue that fell short of market expectations as continued weakness in U.S. consumer spending hurt demand for higher-priced discretionary items. Shares of Ford Motor Co rose more than 1% after the automaker canceled plans for a three-row electric SUV and delayed the launch of its new F-150 in response to weak demand.
Fed minutes point to ‘likely’ rate cut coming in September
“The vast majority” of participants at the July 30-31 meeting “observed that, if the data continued to come in about as expected, it would likely be appropriate to ease policy at the next meeting,” the summary stated.“Some participants noted the risk that a further gradual easing in labor market conditions could transition to a more serious deterioration.” Markets are now fully pricing in a September cut.
Hong Kong Stock Connect had a net inflow of HK0.28bn on Wednesday of which Xiaomi (1810) had the largest net inflow, reaching HK$0.28bn; followed by Wuxi Bio (2269). Tracker Fund (2800) recorded the largest net outflow at HK$0.41bn, followed by China Shenhua (1088).
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.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
