Investment Insights

Latest Market Focus

Impact from US Iran on HK equity (Chinese Only)

CIO Viewpoints

Middle East geopolitical risks trigger market volatility

Daily Insights

Focus of the Day

  • Bloomberg World Large & Mid Cap Index finds technical support

Other Commentaries

  • Middle East tensions disrupt European natural gas supply; China’s Two Sessions signal GDP growth of around 4.5–5% this year; Markets to watch for signs of a slowdown in the US labor market

Market Analysis

FX Markets Analysis

Latest Technical Highlights

XAU - Uptrend↗

Support / Resistance

vs HKD(Oz) 35,972 / 43,792

vs USD(Oz) 4,600 / 5,600

On Wednesday, White House spokesperson Leavitt indicated that there is no definitive timeline for the reopening of the Strait of Hormuz. With energy prices rising for five consecutive days and markets assessing inflation and liquidity risks, gold prices are expected to remain within a narrow range in the short term

 

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

  • US stocks declined on weekly and monthly charts as inflation concerns and high AI valuations weighed on sentiment, with technology shares under particular pressure. Markets now focus on Middle East developments and February employment data
  • Robust earnings from European financials lifted equities to record highs, though attention remains on Middle East tensions and uncertainty over the EU–US tariff deal after temporary US tariffs
  • Middle East tensions may spur short-term volatility in Asian equities, but strong demand for AI hardware and infrastructure supports regional tech stocks. Potential rate cuts by the Reserve Bank of India could aid Indian market performance
  • Rising US–Iran tensions may disrupt global supply chains. Despite solid year-to-date gains in Latin American equities and currencies, short-term volatility risks persist
  • A-shares and Hong Kong stocks fluctuated on higher oil prices and rising risk aversion. High-dividend stocks stayed resilient, with near-term focus on the Two Sessions and corporate earnings  
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

  • US January PPI exceeded expectations, but heightened Middle East tensions drove risk aversion, pushing the 10-year Treasury yield below 4%
  • Long-term US Treasury yields fell amid Middle East tensions, supporting weekly gains in investment-grade corporate bonds, led by industrials and consumer staples
  • Middle East tensions boosted demand for quality bonds, lifting the Bloomberg Asia USD Investment Grade Bond Index 0.48% week-on-week
  • US high-yield bonds saw brief volatility from AI concerns but remained supported by strong corporate earnings, solid economic data, and investor demand
  • The People’s Bank of China kept rates unchanged for a ninth month. With narrow bank margins limiting room for cuts, markets expect potential rate cuts in Q2, while liquidity stays ample
  • The Bank of Thailand unexpectedly cut rates to a post-2022 low to spur demand and investment, likely improving corporate fundamentals and bond performance
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

AUD Demonstrates Resilience Amid Middle East Unrest (Cantonese version) #AI_Mark #Investment #CIOInsights #FX Markets #AUD #FinancialBreakfast

How will market react to tariff uncertainties? (Cantonese version)

Belle Liang & Mark Wan

Gold (Cantonese version)

Belle Liang & Cally Cheng

Latest Market Focus

CIO answered the top 4 questions from investors (Chinese Only)

CAD remains stable, with ongoing attention on the USMCA (Chinese Only)

Impact from US Iran on HK equity (Chinese Only)

Federal Reserve Chair Nomination Does Not Alter Rate Cut Expectations (Chinese only)

US Stock Strategy amid Tech Correction (Chinese only)

Can gold prices regain their strength? (Chinese only)

Why investors are paying closer attention to Agency MBS? (Chinese only)

2026 A-share market outlook (Chinese only)

US Healthcare Sector in Focus Again (Chinese only)

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