FX.co ★ Hang Seng Pares Losses at Finish

The Hang Seng Index experienced a decline of 38 points, or 0.15%, settling at 25,524 on Tuesday, effectively reversing gains made in the preceding session as weakness was observed across most sectors. Traders have adopted a more cautious stance due to concerns regarding the potential negative impacts of the U.S.-EU trade agreement, particularly its effects on economic growth and inflation. Additionally, President Trump suggested implementing a global tariff rate between 15% and 20% on non-negotiating countries, reminiscent of rates from the Great Depression era. Profit-taking activities added pressure, following the recent achievement of multi-year highs by benchmarks in Hong Kong and China. Nonetheless, the index managed to recover from significant early losses after Commerce Secretary Howard Lutnick indicated that Washington might consider a 90-day extension of the tariff pause with Beijing, a move that could facilitate a meeting between Trump and Xi Jinping later this year. Investors are now focused on key macroeconomic events scheduled for this week, including the Federal Reserve's decision on interest rates, U.S. inflation data, and China's Purchasing Managers' Index (PMI) for July. Notable decliners in this trading session included KE Holdings, which fell by 3.0%, Xiaomi Corp. at -2.6%, HKEX at -1.7%, and Want Want China at -1.6%.