FX.co ★ Hong Kong Shares May Take Further Damage On Tuesday

The Hong Kong stock market has experienced a consecutive decline in trading days, dropping over 100 points or 0.6 percent recently. Currently, the Hang Seng Index is slightly above the 16,630-point mark, but it is anticipated to continue this downward trajectory on Tuesday.

A cautious global outlook for Asian markets is forecasted, notably ahead of significant economic data expected later this week. Despite a mixed performance in the European markets, both the U.S. and Asian markets experienced decreases.

The Hang Seng experienced a marginal decrease on Monday, with notable losses reported from property stocks. In contrast, financial share and technology companies exhibited variable performances. For the day, a 91.12 points or 0.54 percent decrease was recorded, ending at 16,634.74 after trading between 16,590.71 and 16,777.41.

Active companies like Alibaba Group and Alibaba Health Info reported a decrease by 0.54 percent and 0.28 percent respectively. Conversely, China Mengniu Dairy reported a 1.20 percent increase, whereas CNOOC experienced a notable increase of 2.69 percent. Other companies like Galaxy Entertainment and Henderson Land reported a modest increase of 0.46 percent.

U.S. markets offered a lackluster performance, with significant averages opening slightly higher on Monday, but dwindling as the day advanced, closing with minor losses. Traders, on the other hand, are presently hesitant to take substantial measures given the previous week's profits, which propelled the Dow and S&P 500 to new peaks.

In view of upcoming key inflation reports from Germany, France, Spain, and the U.S, traders have maintained a cautious approach. In particular, the U.S. Federal Reserve's preferred core measure of personal consumption expenditure prices is catching investor's attention.

Notably, the Commerce Department reported a sustained recovery in new home sales in the U.S. in January, although the growth rate was below expectations. Meanwhile, oil prices, initially low, soared due to recurrent attacks by Houthi militants in the Red Sea route, which raised concerns about the supply. West Texas Intermediate Crude oil futures grew 1.4 percent at $77.58 a barrel for the April term.

Locally in Hong Kong, January's trade balance, imports, and exports figures are due. In December, imports saw an 11.6 percent yearly increase, and exports rose by 11.0 percent, contributing to a trade deficit of HKD 59.9 billion.