Plus   Neg

Hong Kong Bourse Tipped To Open Under Pressure

The Hong Kong stock market on Tuesday ended the two-day slide in which it had stumbled more than 650 points or 2.7 percent. The Hang Seng Index now rests just above the 24,770-point plateau although it figures to see renewed consolidation on Wednesday.

The global forecast for the Asian markets is soft on coronavirus concerns, stimulus questions and falling oil prices. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The Hang Seng finished modestly higher on Tuesday following gains from the technology stocks, weakness from the financials and mixed performances from the properties, casinos and oil companies.

For the day, the index advanced 169.50 points or 0.69 percent to finish at 24,772.76 after trading between 24,642.35 and 24,942.74.

Among the actives, China Mengniu Dairy skyrocketed 5.57 percent, while Tencent Holdings surged 4.52 percent, AAC Technologies and Techtronic Industries both spiked 2.29 percent, Galaxy Entertainment soared 1.79 percent, Henderson Land accelerated 1.24 percent, WH Group jumped 1.04 percent, China Petroleum and Chemical (Sinopec) tumbled 0.86 percent, Industrial and Commercial Bank of China skidded 0.85 percent, CITIC sank 0.80 percent, BOC Hong Kong dropped 0.68 percent, AIA Group climbed 0.55 percent, Hong Kong &China Gas shed 0.37 percent, CSPC Pharmaceutical lost 0.26 percent, CNOOC advanced 0.23 percent, China Life Insurance added 0.22 percent, Ping An Insurance fell 0.18 percent, Wharf Real Estate gained 0.18 percent, Sands China slid 0.17 percent, Power Assets rose 0.12 percent, Sino Land eased 0.11 percent and China Mobile was unchanged.

The lead from Wall Street is negative as stocks moved mostly lower on Tuesday, largely offsetting the upward move seen in the previous session.

The Dow dropped 205.49 points or 0.77 percent to finish at 26,379.28, while the NASDAQ sank 134.18 points or 1.27 percent to end at 10,402.09 and the S&P 500 fell 20.97 points or 0.65 percent to finish at 3,218.44.

The pullback by stocks came as traders kept an eye on developments in Washington after Republicans unveiled their version of a new coronavirus relief bill. The GOP bill includes popular provisions like another $1,200 stimulus payment to American as well as more funding for the Paycheck Protection Program.

However, the legislation also slashes unemployment benefits and provides liability protections for businesses and doctors, which could lead to an impasse in negotiations with Democrats.

Negative sentiment was also generated by a report from the Conference Board showing consumer confidence fell more than expected in July.

Traders were also looking ahead to today's Federal Reserve's monetary policy announcement. While the Fed is widely expected to leave interest rates unchanged, traders will look to the accompanying statement for clues about future plans to provide additional economic stimulus.

Crude oil futures settled lower on Tuesday amid concerns about the outlook for near term energy demand due to the surge in coronavirus cases and fears of fresh lockdown measures. West Texas Intermediate Crude oil futures for September slid $0.56 or 1.4 percent at $41.04 a barrel.

Closer to home, Hong Kong will provide an advance estimate for Q2 GDP later today; in the three months prior, GDP sank 5.3 percent on quarter and 8.9 percent on year.

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