Oversold Hang Seng Still Called To Open Lower

(RTTNews) - The Hong Kong stock market has finished lower in three straight sessions, tumbling more than 1,150 points or 4.4 percent along the way. The Hang Seng Index now rests just above the 26,620-point plateau and it's tipped to open in the red again on Friday.

The global forecast for the Asian markets is negative thanks to interest rate concerns and a tumble in crude oil prices. The European and U.S. markets were firmly lower and the Asian bourses are tipped to open in similar fashion.

The Hang Seng finished sharply lower on Thursday following losses from the financials, properties and oil and insurance companies - while the casinos offered mild support.

For the day, the index plummeted 467.39 points or 1.73 percent to finish at 26,623.87 after trading between 26,551.44 and 27,029.40.

Among the actives, CSPC Pharmaceutical plummeted 4.94 percent, while China Petroleum and Chemical (Sinopec) plunged 4.72 percent, CNOOC tumbled 3.47 percent, WH Group soared 3.38 percent, AIA Group skidded 2.81 percent, Industrial and Commercial Bank of China and CITIC both dropped 2.36 percent, Sands China jumped 1.86 percent, China Life Insurance retreated 1.83 percent, Galaxy Entertainment climbed 1.77 percent, China Mengniu Dairy declined 1.60 percent, Hong Kong & China Gas shed 1.19 percent, Ping An Insurance and BOC Hong Kong both lost 0.97 percent, AAC Technologies advanced 0.76 percent, New World Development fell 0.39 percent and China Mobile was down 0.26 percent.

The lead from Wall Street is soft as stocks opened under pressure on Thursday and remained in the red throughout the session.

The Dow shed 200.91 points or 0.75 percent to 26,627.48, while the NASDAQ lost 145.57 points or 1.81 percent to 7,879.51 and the S&P 500 fell 23.90 points or 0.82 percent to 2,901.61.

The weakness on Wall Street followed a recent jump by U.S. treasury yields that raised concerns about the outlook for interest rates. With the ten-year yield reaching its highest levels in over seven years, traders seem worried the Federal Reserve may raise rates more aggressively than expected.

In economic news, the Labor Department reported a bigger than expected drop in initial jobless claims in the week ended September 29. Also, the Commerce Department noted a bigger than expected rebound in factory orders in August.

Crude oil prices came off four-year highs on Thursday, dragged down by reports suggesting Russia and Saudi Arabia will raise crude output. Crude oil futures for November delivery ended down $2.08 or 2.7 percent at $74.33 a barrel.
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