Hang Seng Finds Support as China Slashes Key Rate to Help the Property Sector
The index finds some support as China’s central bank cut the key rate that affects mortgages, but the move could pressure banking profitability
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The index finds some support as China’s central bank cut the key rate that affects mortgages, but the move could pressure banking profitability
US headline CPI printed at 3.1%, which was lower than the previous 3.4% but higher than the 2.9% expected. The headline month-on-month number was 0.3%, higher than the previous month’s 0.2%.
Pay growth continued to decelerate, but the data were higher than expected and the index is pressured, as markets brace for Wednesday’s inflation update
The SPX500 weekly chart has moved into overbought territory with its RSI above 80 (green rectangle). This comes as the index nears the 5,000 level. Round numbers often prove to be psychological resistance areas, and this may be the case given the index’s frothy indications. I.e. a pullback over the coming weeks is a distinct possibility.
The index is cautious around record highs, awaiting the Fed’s policy decision and quarterly results from tech giants like Microsoft, Meta and Apple
The French index rises after Ms Lagarde stood by recent comments for summer rate cuts, while luxury giant LVMH posted strong 2023 results
Chinese authorities are considering a rescue package to stabilise its ailing stock market. This is not a surprising given how poorly FXCM’s CHN50 basket has performed. On a longer-term monthly scale, CHN50 is sitting in a bearish channel between its lower blue and red bands. Moreover, the momentum-based RSI is languishing below 50, denoting an underlying bearish momentum.
The tech-heavy index reaches new records despite moderation in the Fed rate cuts bets, with key data and earnings by Netflix and Tesla coming up
UK inflation ticked up in December as today’s data showed, weighing on the index, amidst broader monetary policy uncertainty and geopolitical jitters
The German index is subdued as markets digest today’s data showing the economy shrunk last year, but prospects of an ECB pivot are supportive
The UK index rebounds from critical support today, as data showed GDP growth of 0.3% in November, but improving economic conditions could prolong the central banks restrictive stance
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