Hong Kong bonds are positioned for a comparatively prosaic start Tuesday on a behind of waste on Wall Street, as investors eye a initial 2016 US presidential discuss during morning trade.
The Hang Seng Index futures Sep agreement non-stop a pre-trade eventuality 0.12 per cent higher, while Hang Seng China Enterprises Index futures non-stop adult 0.05 per cent or 5 points to 9,623.
Hong Kong’s benchmark equity index saw a biggest dump in dual weeks Monday, acrobatics 1.56 per cent to 23,317.92. Markets indicated counsel forward of a seven-day golden week holiday in mainland China, where southbound investment flows are approaching to dry up.
The arriving holiday also dampened mainland trading, as a categorical Chinese bonds indexes fell to a seven-week low, led by declines in a skill zone and skinny trading.
All 3 vital US indices sealed reduce on Monday as markets geared adult for a televised discuss between US presidential possibilities Hillary Clinton and Donald Trump. About half of authorised electorate in America have nonetheless to confirm who they will expel their ballots for in a Nov 8 election, according to a Reuters/Ipsos check Monday.
The Dow Jones Industrial Average forsaken 0.91 per cent to 18,094.83 and a SP 500 mislaid 0.86 per cent to 2,146.1. Meanwhile, a Nasdaq Composite was down 0.91 per cent to 5,257.49.
“Markets are partially pricing in a Trump victory,” Citi analysts wrote in a note.
Volatility of a US choosing have put investors on edge, as they note a outcome already seen on a US dollar to Mexican peso sell rate.
“This is not a normal US choosing and frequency does a scheduled domestic eventuality accept such a high cost of hedging in unfamiliar exchange,” Nomura analysts wrote in a note.
Oil prices reacted forward of a Wednesday Opec member assembly in Algeria, where investors are banking on a cut or solidify on oil production. Nov Brent wanton oil futures staid reduce during US$47.00 a tub while wanton oil on a New York Mercantile Exchange fell somewhat to US$45.62 a barrel.
In Asian trade early on Tuesday, Tokyo’s Nikkei 225 mislaid 1.45 per cent, South Korea’s Kospi was down 0.72 per cent while in Sydney a All Ordinaries forsaken 0.88 per cent.
All Hong Kong-listed companies with American Depository Receipts (ADRs) traded in a US were down, dropping from their homogeneous Hong Kong shutting prices on Thursday after acclimatisation into a internal currency.
HSBC’s ADR sealed during HK$57.34 down from a HK$57.35 seen during a Hong Kong close, Sinopec’s ADR forsaken from HK$5.38 to HK$5.36 and China Mobile declined from HK$95.20 to HK$95.18.
Article source: http://www.scmp.com/business/money/markets-investing/article/2022833/hong-kong-stocks-wait-and-see-mode-first-2016-us