Investment Insights

CIO Viewpoints

Is the Fed moving closer to a rate hike after Warsh’s anti-inflation signal?

Daily Insights

Focus of the Day

  • US 10-year Treasury yield hits near three-year high

Other Commentaries

  • US manufacturing and jobs data miss expectations; Japan 10-year JGB yield rises to 3%; Macau gaming revenue falls for third straight month

Market Analysis

FX Markets Analysis

Latest Technical Highlights

NZD - Sideways➡

Support / Resistance

vs HKD 4.5479 / 4.7047

vs USD 0.58 / 0.60

On Wednesday (2nd), the Reserve Bank of New Zealand unanimously raised the Official Cash Rate from 2.5% to 2.75%, noting the move reduces the likelihood of further increases. Markets took this as a less hawkish signal and the New Zealand dollar eased, although futures still imply a 100% chance of a December hike

 

Legends

Uptrend ↗  Sideways →  Downtrend ↘

*Pertaining to historical technical trend analysis only and do not reflect any forecasts or any forward looking views

Provided by Hang Seng Investment Services Limited

Stock Markets View

  • Strong earnings from AI leaders supported tech; Fed stayed hawkish, lifting hike odds and capping valuation gains. August CPI may add clues
  • Data point to a steady Europe upturn, supporting earnings growth. Markets are watching France politics and other risks for near-term moves
  • Asia equities were mixed amid shifts in global rate paths, commodity prices and fund flows. Diversified cross-sector and cross-market allocation may aid portfolio resilience
  • After Warsh hawkish remarks, US long yields rose and DXY firmed; Alongside evolving Middle East geopolitical dynamics, these factors are likely to influence risk appetite and positioning toward emerging-market investments
  • Post earnings, Hong Kong lacks near-term catalysts; rotation continues and tech lags. Hang Seng near-term resistance 26,400; support 24,500
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

  • July US PCE remains elevated; Fed Chair sounded hawkish at Jackson Hole. Markets lifted the implied chance of a September hike to about 60%
  • As of 28 Aug, US long yields edged up WoW. US investment grade bonds rose 0.3% WoW, with spreads 2 bps tighter
  • Korea and the Philippines central banks each raised policy rates by 25 bps after meetings. Keep an eye on Middle East events and energy price impact
  • US high-yield bonds posted positive returns, as a pullback in oil prices and increased US Treasury buybacks of longer-dated bonds lifted sentiment across the rates market. Seasonally light issuance heading into late summer also provided technical support for the sector’s performance
  • China’s relaxation of maturities for mortgage and developer loans is expected to support housing demand and improve property credit sentiment. That said, weaker-quality developers may face rising near-term liquidity pressure, and credit differentiation is likely to persist
  • Foreign net inflows into Indonesian government bonds hit a multi-year high in a single day. While protests in Jakarta briefly unsettled markets, yields subsequently retraced lower; we expect the bond market to remain supported by sustained foreign demand and a stabilising policy backdrop
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

Featured Videos

Financial Breakfast

Can HSI break out of the consolidation range? (Cantonese version) #Investment #CIOInsights #Equity Markets #Hong Kong Equities #FinancialBreakfast

Opportunities amid Asia equity market correction (Cantonese version)

Belle Liang & Mark Wan

DXY nears 100; rates repriced again (Cantonese version)

Cally Cheng

Latest Market Focus

CIO Answered the Top 4 Questions from Investors

NZDHKD: 4.5 Expected as Buy Level

Yields and Fiscal Worries Hit The Yen

Gold Targets US$5,000

Hawkish Fed Keeps Yields Elevated

Diverse and Reliably Invest in Japan

Expectation of Accelerated Stimulus Rollout

Healthcare Opportunities Resurging

Position techs at US equity new high

Asia HY Repair Continues 

Market Calendar

Central Bank Release Calendar

Track the proposed dates of publishing major central bank rate at a glance.

Economics Calendar

View the key upcoming events in global markets

Activate Investment Account

Want to trade different investment products anytime, anywhere? Activate your investment account now.

Investment Product At A Glance

From stocks, bonds to ETFs, discover various options that can help you grow your wealth. 

Latest Offers

Discover our latest investment offers tailored to help you make the most of your investments.

Investment Academy

Gain knowledge on diverse investment products to make informed decisions.

Other Related Links

Need help?

Visit our branches

footnote

Disclaimer

Information provided on these webpages is for general information and reference only and does not constitute nor is it intended to be construed as any professional advice, offer, solicitation, or recommendation to deal in any securities or investments. Investors should note that all investments involve risks (including the possibility of loss of the capital invested), prices of securities, foreign exchange, commodity and investment products may go up as well as down and past performance is not indicative of future performance. Investors should read the relevant investment offering documents and terms and conditions (including the full text of the risk factors stated therein) in detail before making any investment decision.

a. (For information produced by Hang Seng Bank Limited or its affiliates) The information is provided by Hang Seng Bank Limited or its affiliates ("Hang Seng") for general information and reference only and does not constitute nor is it intended to be construed as any professional advice, offer, solicitation, or recommendation to deal in any of the securities or investments mentioned herein. The information provided is based on sources which Hang Seng believes to be reliable but has not been independently verified. Any projections and opinions expressed herein are expressed solely as general market commentary and do not constitute solicitation, recommendation, investment advice, or guaranteed return. They represent the views of Hang Seng or the analyst(s) who prepare(s) the information at the time of publication and are subject to changes without notice. No guarantee, representation, warranty or undertaking, express or implied, is made as to the fairness, accuracy, timeliness, completeness or correctness of any general financial and market information, news services and market analysis, projections and/or opinions (“Market Information”) provided on these webpages and the basis upon which any such Market Information have been made, and no liability or responsibility is accepted by Hang Seng in relation to the use of or reliance on any such Market Information whatsoever provided on these webpages. Investors must make their own assessment of the relevance, accuracy and adequacy of the information, projections and/or opinions provided on these webpages and make such independent research/investigations as they may consider necessary or appropriate for the purpose of such assessment. Hang Seng does not make any representation or recommendation or assessment as to whether or not any of the investment(s) mentioned herein is/are suitable or applicable to any persons and thus shall not be held responsible in this regard. Investors should make investment decision(s) based on his/her own financial situation, investment experience, investment objectives, and specific needs; and if necessary, should seek independent professional advice before making any investment decision(s).

All investments involve risks. Investors should note that prices of securities, foreign exchange, commodity and investment products may go up as well as down and past performance is not indicative of future performance. Investors should read the relevant investment offering documents and terms and conditions (including the full text of the risk factors therein) in detail before making any investment decisions.

The research analyst(s) who prepared the information certifies(y) that the views expressed herein accurately reflect the research analyst's(s') personal views and that no part of his/her/their compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in the information provided on these webpages.

b. (For information produced by third-party information providers) Hang Seng Bank Limited and its affiliates (“Hang Seng”) neither endorses nor is responsible for the accuracy or reliability of, and under no circumstances will Hang Seng be liable for any loss or damage caused by any opinion or statement made in the information produced and provided by third-party information providers. The information is for general information and reference only and does not constitute nor is it intended to be construed as any professional advice, offer, solicitation or recommendation to deal in any of the securities or investments mentioned herein. Any projections and opinions expressed herein are expressed solely as general market commentary and do not constitute solicitation, recommendation, investment advice, or guaranteed return. The opinions expressed are those of the featured speaker(s), and do not represent Hang Seng's views. The opinions given by the featured speaker(s) are subject to changes without notice and should not be construed as a solicitation, recommendation, or advice on any individual holdings or market sectors. No guarantee, representation, warranty or undertaking, express or implied, is made as to the fairness, accuracy, timeliness, completeness or correctness of any third party information, projections and/or opinions provided on these webpages and the basis upon which any such third party projections and/or opinions have been made, and no liability or responsibility is accepted by Hang Seng in relation to the use of on any such third party information, projections and/or opinions whatsoever provided on these webpages. Investors must make their own assessment of the relevance, accuracy and adequacy of the information, projections and/or opinions provided on these webpages and make such independent research/investigations as they may consider necessary or appropriate for the purpose of such assessment. Hang Seng does not make any representation, solicitation, recommendation, or assessment as to whether or not any of the investment(s) mentioned herein is/are suitable or applicable to any persons and thus shall not be held responsible in this regard. Investors should make investment decision(s) based on his/her own financial situation, investment experience, investment objectives, and specific needs; and if necessary, should seek independent professional advice before making any investment decision(s).

All investments involve risks. Investors should note that prices of securities, foreign exchange, commodity and investment products may go up as well as down and past performance is not indicative of future performance. Investors should read the relevant investment offering documents and terms and conditions (including the full text of the risk factors therein) in detail before making any investment decisions.

These webpages have not been reviewed by the Securities and Futures Commission of Hong Kong or any regulatory authority in Hong Kong.

It is prohibited to reproduce, store in a retrieval system, or transmit, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise any part of the information provided on these webpages. The information provided on these webpages is solely for personal and non-commercial use and for general information and reference only. Re-distribution of any part of the information in any means or use of the information for any other purposes is strictly prohibited.