On Thursday, the major U.S. stock indexes rose and fell mixed. The Hang Seng Index (HSI) strengthened slightly and stabilized at 20,000 points on Friday. There may be further upward space in the follow-up, and further upwards will first face the obstacles of the 20-day moving average.
Data released by the United States on Thursday showed that the annual rate of the U.S. PPI in July was 9.8%, lower than the expected 10.4% and the previous value of 11.3%; the core PPI annual rate of 7.6% was in line with expectations, but fell from the previous value of 8.2%. Combined with the CPI data released this week, the unexpected drop in PPI data reinforces the view that inflation has peaked.
Fed officials, however, don’t think the latest inflation indicator is enough to stop the pace of rate hikes. San Francisco Fed President Daly said he did not rule out the Fed raising interest rates by 75 basis points for the third time in a row at the September FOMC meeting, while he did not agree with expectations that the Fed will suddenly start cutting interest rates next year. In fact, some Fed officials expressed similar hawkish views after the CPI data came out.
The boost to U.S. stocks by U.S. PPI data did not last. The three major stock indexes showed a trend of rising and falling on Thursday, and they closed mixed. The S&P 500 fell 0.07%, the Dow rose 0.08%, and the Nasdaq fell 0.58% .
The Hang Seng Index (HSI) opened slightly higher by 0.21% on Friday, and then entered a narrow range, with the largest intraday drop of 0.3% and the highest increase of 0.6% to close up 0.46%. The Hang Seng Technology Index closed up 0.54% on Friday. The net inflow of funds into Hong Kong stocks through Southbound Stock Connect on Friday was 1.916 billion yuan.
On Friday, 40 stocks in the Hang Seng Index rose, 27 fell and 2 were unchanged. The top three top performers were: China Hongqiao, up 4.93%; Li Ning, up 4.78%; and Xinyi Glass, up 2.9%. The top three worst-performing stocks were: China Biopharma, down 3.8%; SMIC, down 3.61%; and Xinyi Solar, down 2.93%. The major heavyweights were as follows: Tencent Holdings rose 0.2%; Alibaba rose 1.25%; China Construction Bank rose 0.61%.
The Hang Seng Index (HSI) resumed its downward trend in the third quarter, will it fall back to the low of the beginning of the year? 👇👇👇
Hang Seng Index (HSI) Trend Technical Analysis
The daily chart shows that the Hang Seng Index (HSI) dropped to 20,000 points and rebounded on Friday, indicating that the mark acts as a support, and the follow-up prospects are further bullish. There will be more room for growth. Conversely, if it falls below 20,000 points, the trend outlook will turn to the downside. (Follow the author on Twitter @Legen_DailyFX )
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