Grasp Seng Index: Bulls Goal 26,000 on Fed Charge Reduce Bets, Earnings, and Stimulus…

US Treasury Secretary Scott Bessent referred to as for a 50-basis-point September Fed price lower, fueling hypothesis about additional financial coverage easing within the fourth quarter. He said:

“I believe we may go right into a collection of price cuts right here, beginning with a 50-basis level price lower in September. In case you have a look at any mannequin it means that we must always in all probability be 150, 175 foundation factors decrease.”

Based on the CME FedWatch Software, the probabilities of a 25-basis-point September Fed price lower slipped from 93.9% on August 12 to 93.eight% on August 13. The likelihood of a 50-basis-point price lower rose from zero% to six.2%, indicating a 100% likelihood of a September drop in rates of interest.

Actual Property and Tech Shares Ship Grasp Seng Index towards 26,000

Rate of interest-sensitive actual property and tech shares drove the Grasp Seng Index to its new 2025 excessive. Tech heavyweight Tencent Holding (0700) rallied 1.28%, constructing on Wednesday’s four.74% surge. Tencent reported robust Q2 earnings outcomes, with income topping analysts’ expectations.

In the meantime, the Grasp Seng Mainland Properties Index climbed 1.73%, contributing to the Grasp Seng Index’s beneficial properties.

Technical Setup: Grasp Seng Index Break Above 25,736 Hinges on Earnings

The Grasp Seng Index prolonged its run from the July congestion zone and the 50-day EMA in morning buying and selling, underscoring bullish momentum.

Rising expectations of a US-China commerce deal, upbeat Chinese language financial knowledge, and additional stimulus measures from Beijing may ship the Grasp Seng Index above the essential 26,000 resistance degree.

Conversely, renewed US-China commerce tensions, weak China knowledge, and the absence of recent stimulus might check threat sentiment. A drop beneath the 25,500 assist degree may deliver the 25,000 assist degree into play. If breached, the 50-day EMA could be the subsequent key assist degree.