Investment Insights

CIO Viewpoints

Why Asian and EM dollar bonds became popular this year?

Daily Insights

Focus of the Day

  • Value stocks outperformed, driving Japan's TOPIX to recently exceed the Nikkei’s returns

Other Commentaries

  • EU moved closer to finalizing trade agreements with the US.; UK economic growth nearly stalled in Q3; Brazilian business confidence remained subdued

Market Analysis

FX Markets Analysis

Latest Technical Highlights

GBP - Uptrend↗

Support / Resistance

vs HKD 9.9584 / 10.3474

vs USD 1.28 / 1.33

The Bank of England decided to keep interest rates unchanged at 4% in November. The governor stated that more data was needed to confirm a decline in inflation, reflecting the central bank's cautious approach ahead of the UK government's autumn budget announcement. Technically, resistance for GBP/USD is seen at the 1.33 level.

 

Legends

Uptrend ↗  Sideways →  Downtrend ↘

Pertaining to historical trend technical analysis only and do not reflect any forecasts.

Provided by Hang Seng Investment Services Limited

Stock Markets View

  • Sentiment toward the return prospects of AI and cloud computing spending remains cautious, weighing on US equities. Markets continue to monitor developments regarding US government shutdown, corporate layoffs, and consumer confidence trends
  • Ongoing improvement in European business activity is providing material support to regional equities. However, weak consumer markets persist, and the sustainability of the economic recovery is likely to remain a near-term focus
  • Concerns over stretched global tech valuations have prompted near-term profit-taking in select Asian markets. Nevertheless, diversified positive drivers across the region support a relatively stable outlook
  • Shifting expectations around the pace of Fed rate cuts have contributed to recent USD strength. Should US labor market conditions soften further, renewed USD weakness could provide a tailwind for emerging markets
  • Hong Kong stocks are consolidating but remain within an upward trend. An increase in Mainland China's CPI in October indicates that consumer stimulus measures are beginning to take effect. The market is currently awaiting quarterly results from tech companies and the sales performance during Singles’ Day
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 US 10-year Treasury yield has edged higher since the late-October FOMC meeting. Market attention will turn to official employment data releases once the US government reopens
  • US investment-grade credit spreads widened by 4 bps week-on-week, driven by corporate cost-cutting and layoff trends, as well as rising central bank scrutiny of AI-related valuations
  • Asian investment-grade bonds remained broadly stable last week. Reports indicate that the Reserve Bank of India has intervened to curb currency depreciation and mitigate potential capital outflows
  • US high yield bonds have shown volatility amid tempered Fed rate cut expectations. With valuations near historical highs, near-term performance is likely to be driven by shifts in risk sentiment
  • Mainland China property sales declined 40% year-on-year, pointing to a prolonged sector recovery. Structural challenges may lead to increased divergence among developers, with year-end sales performance in focus
  • Mexico’s central bank cut rates to 7.25% to support economic growth. With overall debt and leverage levels remaining manageable, inflows into emerging market debt are expected to sustain momentum
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

Gold and Bitcoin: A Comparative Outlook (Cantonese version) #AI_Mark #Investment #CIO Insights #Commodity Markets #Financial Breakfast

Trade+FOMC=? (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)

Holding the gains, balancing equities and bonds

US Healthcare Sector in Focus Again (Chinese only)

What to do with bonds under uncertain rate cut (Chinese only)

Is the appreciation of the USD a short-term phenomenon? (Chinese Only)

Improving China-US trade relations to benefit HK equities (Chinese only)

Gold: Healthy correction or reversal? (Chinese Only)

Economic and policy drivers push A-shares higher (Chinese only)

Hybrid Bonds - Navigating the Path to Higher Yields (Chinese only)

Outlook for Major Asian Stock Markets (Chinese only)

Assess US equities amid Rate Cuts (Chinese only)

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.