Investment Insights

CIO Viewpoints

Would Gold's trading range shift higher from now ?

Daily Insights

Focus of the Day
  • August CPI in the US met expectations, with rate cut outlook weakening the dollar

Other Commentaries

  • ECB held rates steady as anticipated; global capital accelerated into emerging markets in August; IEA warned of worsening oil supply glut next year

Market Analysis

FX Markets Analysis

Latest Technical Highlights

GBP - Uptrend↗

Support / Resistance

vs HKD 10.3591 / 10.7485

vs USD 1.33 / 1.38

UK BRC same-store sales increased by 2.9% in August, marking the ninth consecutive month of growth, reflecting that the retail market remains stable.Technically, the resistance for GBP/USD is around 1.38.

 

Legends

Uptrend ↗  Sideways →  Downtrend ↘

Pertaining to historical trend technical analysis only and do not reflect any forecasts.

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Stock Markets View

  • Economic slowdown concerns weighed on the S&P 500, which retreated from record highs. Rate cut expectations rose, favoring small caps over large caps. Awaiting August CPI
  • Retail sales growth declined sharply, underscoring economic weakness. Rising inflation limits ECB rate cut room. European equity trends warrant monitoring
  • Korea’s exports benefited from strong semiconductor demand, India’s Goods and Services Tax (GST) cut, and Thailand’s clearer political outlook—all boosting confidence in Asian equities
  • Weaker USD supported EM equities and FX, but OPEC+ output hikes may pressure oil prices. Political uncertainties in some countries remain a concern
  • Reports of measures to cool China’s market dampened sentiment. Hong Kong equities may trade in a tight range near highs, with limited downside. Focus remains on China’s economy and catalysts
Legends

Positive - Expect that the particular asset class potentially may perform well relative to the relevant major global benchmark(s) in the long run
Neutral - Expect that the particular asset class potentially may perform in line relative to the relevant major global benchmark(s) in the long run
Cautious - Expect that the particular asset class potentially may not perform well or in line relative to the relevant major global benchmark(s) in the long run

Provided by Hang Seng Investment Services Limited

Bond Markets View

  • Weak US nonfarm payrolls fueled rate cut bets. The 10-year Treasury yield fell to 4.07%, the lowest since early April
  • Falling Treasury yields drove US investment-grade credit index to a 2022 high. Market attention turns to the upcoming August US CPI release
  • Liquidity continued to improve in China after six months of PBoC injections, lowering funding costs and boosting issuer solvency
  • Treasury yield declines offset wider credit spreads, supporting US high-yield bonds but elevated valuations leave them prone to volatility from shifts in sentiment
  • Asia high-yield bonds performed well as tier-one Chinese cities eased housing policies, with faster loosening expected to support property bonds
  • EM dollar debt benefited from a weaker USD. Attractive yields relative to US Treasuries and investment-grade corporates supported inflows
Legends

Positive - Expect that the particular asset class potentially may perform well relative to the relevant major global benchmark(s) in the long run
Neutral - Expect that the particular asset class potentially may perform in line relative to the relevant major global benchmark(s) in the long run
Cautious - Expect that the particular asset class potentially may not perform well or in line relative to the relevant major global benchmark(s) in the long run

Provided by Hang Seng Investment Services Limited

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