Investment Insights

CIO Viewpoints

Why HK equities are positioned to break above the January 28,000 level?

Daily Insights

Focus of the Day

  • S&P 500 earnings forecasts continue to be revised higher

Other Commentaries

  • Trump says extension of ceasefire is “highly unlikely”; Power consumption from EVs and data centers surged last year; Mainland China’s March air passenger traffic sees strong growth

Market Analysis

FX Markets Analysis

Latest Technical Highlights

CAD - Sideways➡

Support / Resistance

vs HKD 5.5800 / 5.7000

vs USD 1.36 / 1.39

President Trump signed permits for several oil pipelines last week, including a new pipeline from Canada to the US. With Middle East tensions likely to remain volatile and oil prices elevated, this may prompt a more flexible stance on USMCA trade terms, providing support for the Canadian dollar

 

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

  • Improved risk appetite, supported by optimism around Middle East peace talks and AI-driven demand, helped US equities post several consecutive gains in April. However, the situation in the Middle East remains uncertain, causing volatility 
  • There are signs that Eurozone inflation is picking up. Markets continue to monitor the impact of elevated energy prices on the European economy. If the European Central Bank raises interest rates, it may continue to weigh on European equity valuations
  • Asian technology stocks, supported by the long-term AI investment theme, rebounded strongly since early April. However, the speech after the FOMC meeting later this month, may influence fund flows into Asian equities
  • US–Iran talks have yet to deliver concrete outcomes; negotiations and commodity trends remain key watchpoints. If Middle East tensions ease and risk aversion falls, flows may rotate back into emerging markets
  • China’s first-quarter economic data has been solid. Markets will focus on upcoming first-quarter corporate earnings, particularly management guidance on how ongoing instability in the Middle East may affect businesses
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

  • Improving expectations around Middle East tensions briefly pushed US Treasury yields lower, though renewed volatility could continue to drive yield movements
  • Falling US Treasury yields supported a third straight week of gains in US investment-grade credit. Attention is now turning to US earnings releases
  • China’s Q1 GDP growth accelerated versus Q4 and exceeded expectations. Better supply-and-demand conditions point to a solid start to the year
  • Easing geopolitical concerns lifted risk appetite. Active primary issuance and tighter spreads supported high-yield markets; progress in US–Iran talks remains a key watchpoint
  • China’s Q1 GDP growth of around 5% beat expectations, but ongoing weakness in property investment continues to weigh. This asset class has improved with broader market support, though fundamentals still need confirmation
  • US–Iran talks optimism lowered oil prices and improved sentiment, helping emerging market debt to stabilise. Brazil’s inflation risks persist, but strong oil export dynamics underpin resilience
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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