FX.co ★ Hong Kong Stock Market May Spin Its Wheels On Tuesday

The Hong Kong stock market has experienced a positive trajectory over the past two sessions, achieving a cumulative rise exceeding 250 points, equating to a growth of 1.2%. As of now, the Hang Seng Index stands just above the 20,560 mark, though it is anticipated to open under pressure on Tuesday. The outlook for Asian markets is predominantly steady to slightly lower, influenced by impending U.S. presidential elections and the Federal Reserve's rate announcement later this week. The European and U.S. markets faced declines, indicating a similar opening trend for Asian exchanges.

On Monday, the Hang Seng Index closed with modest gains as sectors such as finance, property, and technology recorded upward movements. Specifically, the index added 61.09 points or 0.30%, closing at 20,567.52, after fluctuating between 20,446.26 and 20,633.58. Notable performers included Alibaba Group with a 1.11% gain, Alibaba Health Info surging 2.83%, while ANTA Sports and China Life Insurance saw increases of 0.18% and 0.24%, respectively. Conversely, China Mengniu Dairy slipped by 0.34%, and China Resources Land dropped by 0.75%. Other movements included CNOOC declining by 1.41%, Haier Smart Home climbing by 1.05%, and Henderson Land rising sharply by 1.58%. Throughout the day, companies like JD.com and CITIC saw dips, while Lenovo, Li Auto, and Nongfu Spring observed upward momentum.

The Wall Street lead is not very encouraging, as key indices opened down on Monday, remained largely flat, and concluded the day with losses. The Dow declined by 257.59 points or 0.61%, landing at 41,794.60. The NASDAQ fell by 59.93 points or 0.33% to 18,179.98, and the S&P 500 decreased by 16.11 points or 0.28%, closing at 5,712.69.

The indecisive nature of Wall Street trading is attributed to trader reticence regarding significant adjustments prior to the U.S. elections. Vice President Kamala Harris is challenging former President Donald Trump in what polls suggest is an exceptionally close contest, implying that the election outcome might not be immediately clear. Additionally, market participants are poised for the Federal Reserve's forthcoming monetary policy decision on Thursday. There is a general expectation for a 25 basis point rate cut, though the accompanying statements will be closely scrutinized for indications of future rate adjustments.

On the commodity front, oil prices experienced a sharp rise on Monday, propelled by OPEC’s decision to postpone increasing production amidst growing tensions in the Middle East. West Texas Intermediate crude oil futures for December saw a significant gain, rising by $1.98 or about 2.85%, closing at $71.47 per barrel, marking an upward trend for the fourth consecutive session.