Investment Insights

CIO Viewpoints

2026Q3 asset allocation: AI trade still dominates

Daily Insights

Focus of the Day

  • Dollar Index may be forming an initial peak

Other Commentaries

  • Fed reforms task force set to report; Beijing regulator targets food-delivery price war; Japan consumption stays firm, bolstering BoJ hike bets

Market Analysis

FX Markets Analysis

Latest Technical Highlights

GBP - Sideways➡

Support / Resistance

vs HKD 10.1959 / 10.4312

vs USD 1.30 / 1.33

A leading UK prime ministerial contender, Andy Burnham, said on Monday (30) he can deliver meaningful reform without compromising fiscal stability, easing concerns over higher government borrowing. Ten-year gilt yields declined, which should help keep sterling broadly stable in the near 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

  • AI chip stocks have weighed on the Nasdaq, triggering a recent capital rotation into industrial and defensive sectors. The decline in oil prices has slightly eased concerns about further rate hikes; going forward, watch for AI-related consolidation and sector rotation opportunities
  • The pullback in oil prices is helping to ease market concerns about additional ECB rate hikes, which is supportive for European equity sentiment in the near term. Meanwhile, renewed political developments in the UK may cap the performance of UK equities
  • A sell-off in global technology stocks has dragged on Asian equity markets. However, lower oil prices are easing regional inflation pressures, which could improve fundamentals for energy-import-dependent Asian economies
  • US–Iran talks remain uncertain. A seemingly hawkish Fed stance and a persistently strong US Dollar Index may continue to weigh on investor risk appetite and influence global capital allocation towards emerging markets

     

 

  • Hong Kong equities are being pressured by multiple factors: rising expectations of US rate hikes, alongside concerns that intensifying competition in the technology sector is weighing on performance. The next support level for the Hang Seng Index is 21,500
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

  • US May PCE inflation rose 4.1% year-on-year, but the relatively modest month-on-month increase has cooled market expectations for further rate hikes. Long-dated US Treasury yields have consequently softened
  • As of 26 June, the decline in US long-term yields continued to support a rebound in US investment-grade corporate bonds, which rose 0.41% week-on-week. However, credit spreads widened slightly by 2 basis points
  • The PBoC kept the Loan Prime Rate (LPR) unchanged for the 13th consecutive month, helping to stabilise domestic funding costs and support the sustainability of credit growth
  • US high-yield spreads have widened, with lower-rated segments under greater pressure. The pullback in technology stocks and renewed inflation concerns have weighed on sentiment; markets will be watching the Fed’s stance and shifts in overall risk appetite
  • The Reserve Bank of India has played down expectations of further rate hikes, helping to stabilise the local bond market. That said, with oil price volatility and inflation risks not fully resolved, sentiment is likely to remain cautious
  • In Colombia’s presidential election, the victory of a pro-market candidate has lifted expectations for pro-business reforms. Together with a stronger Colombian peso, local-currency Colombian bonds have outperformed
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

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