The stronger-than-expected CPI data in the United States in August caused market turmoil, and the US stock index suffered heavy losses overnight. Hong Kong’s Hang Seng Index (HSI) was not immune to the impact on Wednesday, opening lower and closing down 2.48%. Technically, the outlook of the Hang Seng Index is further bearish, and the follow-up further downward focus on whether the March low to the 18500 area can provide support.
The August data released by the United States on Tuesday showed that the annual rate of CPI for the month was 8.3%, exceeding the expected 8.1%; the annual rate of the core CPI reached 6.3%, which not only exceeded the expected value of 6.1%, but also exceeded the previous value of 5.9%. The stronger-than-expected CPI hit expectations that U.S. inflation has peaked, and the market is betting on the Fed to raise interest rates by 100 basis points this month. The U.S. dollar index has soared, and the corresponding risk appetite has deteriorated sharply.
U.S. stocks suffered their worst losses since June 2020 on Tuesday, with the S&P 500 down 4.32%, the Nasdaq down 5.16% and the Dow down 3.94%. The panic index soared more than 14%.
Hong Kong’s Hang Seng Index (HSI) fell 1.85% at the open on Wednesday, and then continued to fall, with the largest intraday drop of 2.72% and a close of 2.48%, the largest one-day drop in two months. The Hang Seng Technology Index closed down 2.85% on Wednesday.
Only 4 Hang Seng stocks rose on Wednesday, while the remaining 69 stocks fell. The top three best performers were: Orient Overseas International, up 2.27%; CNOOC, up 2.21%; and Galaxy Entertainment, up 0.35%. The top three worst-performing constituents were: Techtronic, down 10.0%; Baidu Group, down 5.66%; and WuXi Biologics, down 4.87%. The major heavyweights performed as follows: Tencent Holdings fell 1.71%; Alibaba fell 4.5%; China Construction Bank fell 1.67%.
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Hang Seng Index (HSI) Trend Technical Analysis
The daily chart shows that the Hang Seng Index (HSI) has rebounded this week after being blocked near 19500, and then further declines will point to the descending support line of 18500 and the March low of 18235. If the rebound is corrected, the gap at 18900-19300 is the resistance area, which may limit the rebound upside.
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