Grasp Seng Index Information: Will Powell’s Speech or Beijing Drive the Subsequent Market Transfer?…

The US Composite PMI rose from 55.1 in July to an Eight-month excessive of 55.four in August. Service suppliers employed on the quickest fee in seven months, whereas companies throughout each sectors reported increased import costs. Service sector worth inflation reached its highest degree since August 2022.

August’s flash PMI numbers overshadowed jobless claims knowledge. Preliminary jobless claims elevated from 224okay (week ending August 9) to 235okay (week ending August 16). In keeping with the CME FedWatch Device, the possibilities of a September Fed fee minimize fell from 82.four% on August 20 to 75.5% on August 21.

EV and Tech Shares Rebound as Dip Patrons Return

Dip-buyers jumped again into Hong Kong’s heavyweights Friday, driving EV and tech names increased regardless of weak earnings and personal consumption indicators. Electrical car (EV) shares led the morning features, with BYD (1211) rallying 1.44%. Tech heavyweight Tencent Holdings (0700) climbed 1.43%, with Alibaba (9988) and Baidu (9888) additionally advancing.

Energy consumption numbers indicated continued financial momentum early within the third quarter, elevating demand for Hong Kong and Mainland-listed shares. Brian Tycangco, editor at Stansberry Analysis, commented:

“An Eight.6% YoY hike in energy consumption. China is collapsing backwards.”

The market’s near-term outlook stays extremely event-driven. Draw back dangers linger until Beijing acts decisively or Powell boosts fee minimize bets.

Technical Setup: Grasp Seng Index Rebound Hinges on the Fed and Beijing

Regardless of the morning features, the Grasp Seng Index stays throughout the mid-August congestion zone, underlining market uncertainty. However, the Index trades above key technical ranges, sustaining a cautiously bullish bias. The outlook hinges on a number of key occasions.

Grasp Seng Index: Key Eventualities to Watch

Bullish Situation: A dovish Fed Chair Powell, new stimulus from Beijing, upbeat Chinese language PMI knowledge, or a US-China commerce deal. These elements might ship the Grasp Seng Index towards its 2025 excessive of 25,767.

Bearish Situation: A hawkish Fed Chair Powell, Beijing’s silence on coverage assist, weak Chinese language knowledge, or stalled US-China commerce talks. These elements might push the Index under 25,000, exposing the 50-day Exponential Shifting Common (EMA).