A Week in Review: Economic Uncertainties Stir Global Markets

Hong Kong Stock Market

Hong Kong stocks still recorded declines after repeated shocks last week. Although the decline was not large, it had a certain negative impact on the short-term structure. At the beginning of the week, under the influence of many targeted policies, the market carried out obvious hype and intervention in the real estate, property, cycle and other sectors, but the pressure of the technology sector again and the repeated situation of the A-share market brought pressure on the mood and continuity of the hot speculation, so that in most cases, the market adopted swing trading without forming obvious continuity, and only some individual stocks trended strongly, but also did not pry the overall stability of the market. Looking forward to next week, the index still has a certain chance to test the bottom support.18,000 points as an important short-term support level cannot be lost. Under the influence of low transactions, the sector and individual stocks will also show repeated shocks and insufficient continuity.

US Stock Market

The three major US stock indexes surged and fell last week. The Nasdaq closed down 2.02%, the S&P 500 closed down 1.43%, and the Dow closed down 0.97%. Technically, the S&P 500-day K-line fell close to the EMA60 moving average, but both the MACD and KDJ indicators showed short signs. It is expected that the possibility of the index continuing to fall will not be ruled out, and the EMA60 moving average will become an important support level. In the sector, half of the S & P 500's eleven major sectors closed up. Among them, the utilities, real estate and healthcare sectors rose the top three, with 1.01%, 0.40%, and 0.36%, respectively. Historical data shows that the activity of funds in the US stock market weakened in September, but this year, under the expectation of whether the Federal Reserve will change its rate hike path, affected by the inference of a soft landing in the economy, market sentiment has fluctuated greatly. At present, the market has basically priced interest rates at or near the peak. The expectation that interest rates will fall may become a major driving force for the growth stocks sector to push up the index market.

Fixed Income Market

The recent differentiation of US economic data shows that the rate of slowdown in various economic sectors in a high interest rate environment may be different. This week, the US stock market's stock and debt double-kill. Although earlier this week, Treasury yields fell to a certain extent driven by weak employment data last week. However, the unexpected strengthening of the leading economic indicators announced later has caused the market to regain expectations of tight monetary policy, driving a general rebound in government bond rates later this week. In terms of term structure, the increase in long-term bond yields this week is more obvious than that of short-term bonds, and the yield curve has a bear flattening movement.

Author: Eddid Research Team

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