Investment Insights

CIO Viewpoints

Navigating Volatility Through Diversification

Daily Insights

Focus of the Day

  • Nasdaq 100 holds above 200-day moving average

Other Commentaries

  • China, US and Russia discuss leaders’ summit; Eurozone inflation hits three-year high; Some memory chip spot prices decline

Market Analysis

FX Markets Analysis

Latest Technical Highlights

CAD - Uptrend↗

Support / Resistance

vs HKD 5.5250 / 5.6851

vs USD 1.38 / 1.42

Canada’s September trade surplus reached C$5.35 billion, its highest level since May 2022. Progress in US–Canada trade negotiations, combined with Donald Trump’s midterm election defeat potentially encouraging an easing of trade restrictions on Canada, could help improve bilateral relations and provide 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

  • Concerns over AI capital spending and investment returns weighed on technology shares. Resilient US growth, sticky inflation and a cautious Federal Reserve may continue to constrain richly valued stocks.
  • A softer euro supports European corporate earnings, but volatile Middle East tensions and elevated energy prices raise the risk of further ECB tightening, potentially capping near-term equity performance.
  • AI-sector volatility drove a risk-off shift in late October and may weigh on some Asia-Pacific markets near term. Diversification across regional sectors and markets remains prudent.
  • Emerging-market economies remain broadly resilient, but an elevated dollar, commodity-price swings and domestic political risks in selected markets keep the global backdrop volatile.
  • The Fifth Plenum reaffirmed support for consumption and high-quality growth, while calling for full use of existing tools to meet annual targets. Concrete measures could provide the next equity catalyst.
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

  • The Federal Reserve held rates at 3.75%-4.00%. December will be the year’s final policy checkpoint and could provide greater clarity on the rate path.
  • AI capital spending continues to lift investment-grade bond supply. US investment-grade issuance has risen to a record of about $1.76 trillion this year.
  • Asian central-bank policy is diverging as authorities respond to varying growth and inflation conditions. Regional corporate credit fundamentals remain broadly sound.
  • US high yield rebounded sharply in late October as oil prices eased and AI sentiment improved, pushing yields and spreads lower. Lower-rated debt remains vulnerable.
  • Asian high yield remains under pressure. Slower Macau gaming revenue leaves the earnings and cash-flow outlook in need of improvement, pointing to continued credit differentiation.
  • Local-currency emerging-market bonds lagged as Brazil fiscal concerns lifted risk premia and weighed on the real. Near-term performance is likely to remain differentiated.
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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