News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/9po5Lg4vnR
  • The Japanese Yen is eyeing the upcoming Bank of Japan rate decision and CPI figures, but JPY crosses will likely remain dependent on broader market sentiment. Get your weekly $JPY forecast from @FxWestwater here: https://t.co/x9rbQpPfWe https://t.co/2x1R5XTVea
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/uCaWQiu4Ly
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:https://t.co/XrpV0jcy8e https://t.co/g2To3LmUah
  • RT @michaeljburry: Read thread.
  • The Australian Dollar has retraced from August lows when looking at AUD/JPY and AUD/CAD. However, the AUD/NZD downtrend is intact, will a reversal there appear as well? Find out: https://t.co/8LmgqLLGJO https://t.co/AueigVsuk4
  • The S&P 500, Dow Jones and DAX 30 could be at risk of falling as retail traders continue increasing their upside exposure in these indices. What are the key technical levels to watch for? Find out from @ddubrovskyFX here:https://t.co/OJByiwIppr https://t.co/P1iOONG90N
  • The US Dollar continues to hold its ground against most ASEAN currencies as recent downtrends lose momentum. What is the road ahead for USD/SGD, USD/THB, USD/PHP and USD/IDR? Find out from @ddubrovskyFX here:https://t.co/UcleaZEAaW https://t.co/62bGLvt8fE
  • The Canadian Dollar has been caught in broad ranges against the Euro and the US Dollar, but can the upside bias in USD/CAD and EUR/CAD prolong? Find out here:https://t.co/8DubboXsjv https://t.co/A0sIYo2iP1
Stocks Drop in Hong Kong as Trade War Trumps Upbeat PMI Data

Stocks Drop in Hong Kong as Trade War Trumps Upbeat PMI Data

Ilya Spivak, Head Strategist, APAC

HANG SENG INDEX, TRADE WAR, CHINA PMI – Talking Points:

  • Hang Seng Index (HSI) down as trade war escalation triggers risk aversion
  • Upbeat Caixin Chinese PMI surveys unable to countervail selling pressure
  • Technical breakdown may set the stage to challenge 13-month range floor

Where will markets end 2019? See our Q4 forecasts for currencies, commodities and stock indexes!

Another batch of better-than-expected Chinese data was not enough to keep stocks in Hong Kong afloat. Caixin PMI data showed service-sector growth accelerated more than economists expected in November, registering at the fastest clip in six months. Taken together with a rosy manufacturing PMI print earlier in the week, this amounted the best overall performance since February.

Nevertheless, the Hang Seng Index (HSI, magenta line on the chart below) has suffered as trade war escalation cooled risk appetite. Futures tracking the Hong Kong stocks benchmark sank with the bellwether S&P 500 index (turquoise line) and US 10-year Treasury yields (orange line). The priced-in 2020 policy path implied in Fed Funds futures (white line) shifted lower in tandem, implying a dovish reappraisal.

Chang of Hang Seng Index falling with S&P 500, 10-year Treasury yields and the Fed policy outlook

Hang Seng Index chart created with TradingView

Further weakness may be in the cards. HSI is on course to break counter-trend support guiding its upswing from mid-August lows. Confirmation on a daily closing basis would suggest a correction has run its course and the dominant decline launched in mid-April has resumed. Initial support follows at 25507. The true test of sellers’ mettle may be the 24457-876 zone however. They have not managed to break it in over a year.

Hang Seng Index price chart - daily

Hang Seng Index chart created with TradingView

HANG SENG INDEX TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES