Live Chat

Hang Seng index tanks close to 10% amid lack of immediate stimulus

Hang Seng index plummets by 10% as Beijing falls short on stimulus

Hong Kong’s Hang Seng index is behaving like a penny stock… China has no choice but to do straight quantitative easing (QE) to spread about the stimulus — so says Goldman's Borislav Vladimirov, who says failure to do so will result in an even bigger mess down the line. Hard to argue with this.

The Hang Seng tanked by close to 10% before clawing back to a smaller loss of 9.4% on the day as authorities in Beijing failed to provide new details on further stimulus measures.


Disappointment over China stimulus leads major global indices to dip by 1%

Stocks dipped lower on Tuesday after a jittery start to the week on Monday saw a mixed bag for equity markets. Energy shares outperformed to help the FTSE 100 rise a touch yesterday but disappointment over China stimulus measures has sent all the major indices lower this morning by around 1%.

Basic resources and luxury were among the worst-hit sectors due to their exposure to China. US stocks fell about 1% yesterday and oil prices extended gains on Middle East tensions with Brent rallying above the $80 mark. The US 10-year yield rose above 4% for the first time in a long while whilst UK gilt yields advanced further.

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Shares Search
Shares
Index
Commodity
Bonds
Crypto
ETFs
Currency

Instrument

Search
Clear input
Occidental
Prosus N.V.
Porsche AG
Hermes
CAT
Thermo Fisher
Nikola Corporation
Tilray
Shell plc (LSE)
Skillz Inc
Iberdrola
DeltaAir
CrowdStrike Holdings
Golar LNG
Applied Materials
Snowflake
Royal Bank Canada
Amazon.com
Spotify
Exxon Mobil
CCB (Asia)
McDonald's
Campari
GameStop
Netflix
ON Semiconductor
Costco
Dave & Buster's
Delivery Hero SE
LUCID
Continental
Zoom Video Communications
Schlumberger
Virgin Galactic
Upwork Inc.
Cameco
JP Morgan
Fuelcell
Rivian Automotive
XPeng Inc
Wal-Mart Stores
Trade Desk
Blackstone
Vodafone
Aptiv PLC
L'Oreal
Target
Rio Tinto
Sartorius AG
British American Tobacco
Qorvo
ASOS
Cisco Systems
Nel ASA
Arista
Airbus
Apple
Pfizer
AMC Entertainment Holdings
ASML
Hubspot
Teladoc
Starbucks
SMCI
Canopy Growth
Wish.com Inc
Lockheed Martin
ProSiebenSat.1
IAG
AbbVie
Marston's
Baidu
Teleperformance
Norwegian Air Shuttle
Airbus Group SE
HSBC HK
Block
Annaly Capital
Abbott
LVMH
American Express
Novavax
GoPro
Siemens
Total
SIG
Pinterest Inc
Taiwan Semi
Etsy
Amgen
SONY
3D Systems
UPS
BlackBerry
Gen Digital Inc
Xiaomi
Quanta Services
Unity Software
NVIDIA
Anglo American
Palantir Technologies Inc
Fresnillo
Deere
Rolls-Royce
Porsche
Uber
Vir Biotechnology
American Airlines
ROBLOX Corp
Macy's
FirstRand
easyJet
DISNEY
Aurora Cannabis Inc
BP
Adidas
Boeing Co
Vonovia
Coca-Cola Co (NYSE)
Home Depot
General Electric
Coinbase Inc
ALIBABA HK
Philip Morris
General Motors
PayPal
UniCredit
II-VI
BASF
Kraft Heinz
Alphabet (Google)
Palo Alto Networks
Plug Power
Li Auto
Oracle
Roku Inc
UiPath Inc
Upstart Holdings Inc
F5 Networks
Infinera
Inditex
ZIM Integrated Shipping Services Ltd
Deutsche Bank
Hammerson
IBM
JD.com
Barrick Gold
Lemonade
MerckCo USA
Infosys
Invesco Mortgage
Comcast
Santander
Accenture
Anheuser-Busch Inbev
Visa
Mastercard
T-Mobile
SAP
Wayfair
Beyond Meat
Kuaishou
CarMax
Tesla
Lyft
Medtronic
Adobe
Morgan Stanley
Workday Inc
Blackrock
Vipshop
Meta (Formerly Facebook)
Linde PLC
Micron
Lululemon
Ceconomy
Chipotle
Gilead
Naspers
Bristol Myers
The Cheesecake Factory
Glencore plc
British American Tobacco
ChargePoint Holdings Inc
Twilio
Intel
Lloyds
CNOOC
Electrolux
Wells Fargo
Sea
PG&E
Fedex
Citigroup
Peloton Interactive Inc.
eBay
Microsoft
JnJ
Bilibili Inc
Trump Media & Technology Group
AIA
Nasdaq
Air France-KLM
Allianz
Lithium Americas Corp
Procter & Gamble
Qualcomm
AMD
New Oriental
MercadoLibre.com
Mondelez
Lumentum Holdings
Two Harbors Investment aration
AstraZeneca
Norwegian Cruise Line
Unilever
GoHealth
PepsiCo
Barclays
PETROCHINA
Goldman Sachs
Eli Lilly
HSBC
Cellnex
Berkshire Hathaway
Jumia Technologies
HDFC Bank
RTX Corp
Bayer
Bank of America
Chevron
ADT
DoorDash
Marriott
Nike
AT&T
GSX Techedu
Robinhood
Telecom Italia
Deliveroo Holdings
TUI
Freeport McMoRan
Toyota
BioNTech
Airbnb Inc
Alibaba
Verizon
Nio
Eni
Ford
Volkswagen
UnitedHealth
Shopify
China Life
Snap
Christian Dior
Conoco Phillips
Lufthansa
Tencent
Moderna Inc
Salesforce.com
Broadcom
Diageo
Toro
Cinemark

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

Domestic China stocks surge after Golden Week holiday but fail to retain momentum

Chinese shares rocketed as the main bourses reopened after a holiday, but lost momentum as the country’s National Development and Reform Commission failed to offer anything new on expected stimulus measures. The market had been pinning a lot of hope on some new measures, but didn’t get what it wanted.

There is a clear impact on the miners — Glencore had rallied 20% over the last month, so today’s 5% decline reflects as much the strength of the run-up as much as the disappointment today. Aluminium, copper and other industrial metals declined about 3%. Oil pulled back on the China story after touching the 200-day SMA resistance.


Citi remains “bullish” on China stocks, raises mid-2025 forecasts

As for David Tepper’s “buy everything China” trade...

According to Citi, the Chinese government is likely to do more in due course. The bank said in a recent note: "We remain bullish because Chinese equity valuations are still low compared with those of emerging market stocks, even after the past three weeks of share price gains.”

Citi raised its end-June 2025 targets for major Chinese stock indexes by over 20%, projecting the Hang Seng index to reach 26,000, the CSI 300 to hit 4,600. Goldman Sachs and HSBC also raised their forecasts after the monster rally.

Gilt yields rise ahead of Budget as Chancellor Reeves set to increase borrowing

The Labour government may well want to change the debt rule to allow for more borrowing for investment. The bond market may not let them. The 10-year gilt yield has risen from around the 3.75% mark in mid-September to close to 4.2% today, whilst spreads have widened. It was on September 23rd that the Chancellor, Rachel Reeves, promised the fiscal event of October 30th would be a “Budget for investment”.

Labour has spent a lot of time, and no small amount of political capital, on showing it will be credible on finances. It’s not just the threat of more borrowing; the Bank of England is seen cutting a bit more slowly than in Europe, for instance. But as I said last month, watch gilts. The FT leads with this story this morning and notes that the memory of the Truss panic is still vivid.

Sterling continues to lose ground on the US dollar, but the momentum is slackening as it approaches 1.30 and has found some support at the 50-day line at 1.3080.


When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

Wednesday, 6 November 2024

Indices

U.S. presidential election market volatility drives Bitcoin prices to reach a historic high

Stock market rally

Tuesday, 5 November 2024

Indices

US Election Results Trigger Stock Gains Across Europe, Asia, and US

US Election Trump's victory

Tuesday, 5 November 2024

Indices

Trump Victory Spurs Market Gains and Economic Shift Expectations

Tuesday, 5 November 2024

Indices

US election: bitcoin price (BTC) surged to new record as Trump leading ahead

Live Chat