HANG SENG INDEX, TRADE WAR, CHINA PMI – Speaking Factors:Hold Seng Index (HSI) down as commerce warfare escalation triggers dange
HANG SENG INDEX, TRADE WAR, CHINA PMI – Speaking Factors:
- Hold Seng Index (HSI) down as commerce warfare escalation triggers danger aversion
- Upbeat Caixin Chinese language PMI surveys unable to countervail promoting stress
- Technical breakdown could set the stage to problem 13-month vary flooring
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One other batch of better-than-expected Chinese language knowledge was not sufficient to maintain shares in Hong Kong afloat. Caixin PMI knowledge confirmed service-sector progress accelerated greater than economists anticipated in November, registering on the quickest clip in six months. Taken along with a rosy manufacturing PMI print earlier within the week, this amounted the perfect total efficiency since February.
Nonetheless, the Hold Seng Index (HSI, magenta line on the chart under) has suffered as trade war escalation cooled risk appetite. Futures monitoring the Hong Kong shares benchmark sank with the bellwether S&P 500 index (turquoise line) and US 10-year Treasury yields (orange line). The priced-in 2020 coverage path implied in Fed Funds futures (white line) shifted decrease in tandem, implying a dovish reappraisal.
Hold Seng Index chart created with TradingView
Additional weak point could also be within the playing cards. HSI is on target to interrupt counter-trend help guiding its upswing from mid-August lows….