The Economic Information Agency reported on the 8th that the minutes of the Fed's September interest rate meeting showed that most members believed another rate hike before year-end might be necessary to curb inflation. However, the swap market indicates that the probability of a rate hike by the Fed this month is about one in four. Overnight, U.S. 30-year and 10-year bond yields rose to their highest levels since 2002, but later retreated after the U.S. Treasury auctioned $39 billion in 10-year notes with strong demand. Meanwhile, rising oil prices during the session also pressured U.S. stocks. The three major U.S. indices retreated overnight: the Dow Jones fell 341 points, or 0.66%, closing at 51,179; the S&P 500 dropped 0.22%, ending at 7,801; and the Nasdaq also declined 0.22%, closing at 27,538.
*Night session futures at over 100-point discount, ADRs weaken*
Although the Nasdaq Golden Dragon Index, which reflects the performance of Chinese stocks, rose slightly by 0.12%, one of the tech giants, Alibaba, fell 2.07% to $107.00; JD.com rose 2.00% to $27.03; Baidu dropped 2.01% to $85.30; Li Auto rose 0.92% to $10.99; XPeng rose 0.21% to $10.99; NIO rose 1.72% to $3.54; Bilibili rose 0.13% to $14.92.
The Hang Seng Index night session futures closed at 23,962, down 154 points, at a discount of 169 points to the spot. In overnight ADRs, Meituan (03690) ADR was 0.54% lower than its Hong Kong counterpart, equivalent to HK$69.80; CK Hutchison (00001) ADR was 1.18% lower, equivalent to HK$67.10; Tencent (00700) ADR was 0.19% lower, equivalent to HK$419.80; Xiaomi (01810) ADR was 0.08% lower, equivalent to HK$23.90; HKEX (00388) ADR was 0.44% lower, equivalent to HK$377.30; HSBC (00005) ADR was 1.88% lower, equivalent to HK$147.10; AIA (01299) ADR was 1.05% lower, equivalent to HK$68.10.
*Optimism over northbound fund inflow fuels bullish bets, HSBC under pressure as Hang Seng Index risks falling below 24,000*
The Hang Seng Index retreated over 100 points yesterday, hitting a low of 24,071, triggering the knock-out of dozens of bull warrants. However, this did not dampen bullish confidence. Bull warrant open interest increased by several hundred to a total of 9,548, with the heaviest concentration remaining in the 23,800 to 23,899 range—the area with the most new additions, where 264 of the 1,442 total positions were newly added. This zone is only 231 points below the current spot level of the Hang Seng Index, making it possible for it to be triggered if northbound funds sell off. On the bearish side, open interest increased by over 200 to a total of 8,047, with 205 new positions added in the newly issued 24,300 to 24,399 range.
The Singapore HS50 Index, known as the "black market futures," is currently down 155 points at 23,929, at a discount of 201 points, suggesting the Hang Seng Index will likely open over 100 points lower. Overnight, U.S. bond yields showed renewed strength, with both 10-year and 30-year yields hitting new highs since 2002, indicating continued pressure on major tech stocks today. In addition, heavyweight HSBC faces pressure due to potential UK tax hikes on the banking sector and possible revenue losses from staff cuts, causing its share price to weaken consecutively. Its overnight ADR was about 1.9% lower than its Hong Kong close yesterday. Combined with the softness in major tech stocks, these factors weigh on the Hang Seng Index. Although mainland China's National Day Golden Week has ended and northbound funds are returning today, with market expectations that they could boost a rebound in the Hang Seng Index, the index fell from its close of 24,613 on September 30 to yesterday's close of 24,130, a cumulative drop of 483 points. The possibility of northbound funds selling cannot be ruled out, suggesting the Hang Seng Index may trade weakly lower today, with the key 24,000 level under renewed pressure. (vs)
*Night session futures at over 100-point discount, ADRs weaken*
Although the Nasdaq Golden Dragon Index, which reflects the performance of Chinese stocks, rose slightly by 0.12%, one of the tech giants, Alibaba, fell 2.07% to $107.00; JD.com rose 2.00% to $27.03; Baidu dropped 2.01% to $85.30; Li Auto rose 0.92% to $10.99; XPeng rose 0.21% to $10.99; NIO rose 1.72% to $3.54; Bilibili rose 0.13% to $14.92.
The Hang Seng Index night session futures closed at 23,962, down 154 points, at a discount of 169 points to the spot. In overnight ADRs, Meituan (03690) ADR was 0.54% lower than its Hong Kong counterpart, equivalent to HK$69.80; CK Hutchison (00001) ADR was 1.18% lower, equivalent to HK$67.10; Tencent (00700) ADR was 0.19% lower, equivalent to HK$419.80; Xiaomi (01810) ADR was 0.08% lower, equivalent to HK$23.90; HKEX (00388) ADR was 0.44% lower, equivalent to HK$377.30; HSBC (00005) ADR was 1.88% lower, equivalent to HK$147.10; AIA (01299) ADR was 1.05% lower, equivalent to HK$68.10.
*Optimism over northbound fund inflow fuels bullish bets, HSBC under pressure as Hang Seng Index risks falling below 24,000*
The Hang Seng Index retreated over 100 points yesterday, hitting a low of 24,071, triggering the knock-out of dozens of bull warrants. However, this did not dampen bullish confidence. Bull warrant open interest increased by several hundred to a total of 9,548, with the heaviest concentration remaining in the 23,800 to 23,899 range—the area with the most new additions, where 264 of the 1,442 total positions were newly added. This zone is only 231 points below the current spot level of the Hang Seng Index, making it possible for it to be triggered if northbound funds sell off. On the bearish side, open interest increased by over 200 to a total of 8,047, with 205 new positions added in the newly issued 24,300 to 24,399 range.
The Singapore HS50 Index, known as the "black market futures," is currently down 155 points at 23,929, at a discount of 201 points, suggesting the Hang Seng Index will likely open over 100 points lower. Overnight, U.S. bond yields showed renewed strength, with both 10-year and 30-year yields hitting new highs since 2002, indicating continued pressure on major tech stocks today. In addition, heavyweight HSBC faces pressure due to potential UK tax hikes on the banking sector and possible revenue losses from staff cuts, causing its share price to weaken consecutively. Its overnight ADR was about 1.9% lower than its Hong Kong close yesterday. Combined with the softness in major tech stocks, these factors weigh on the Hang Seng Index. Although mainland China's National Day Golden Week has ended and northbound funds are returning today, with market expectations that they could boost a rebound in the Hang Seng Index, the index fell from its close of 24,613 on September 30 to yesterday's close of 24,130, a cumulative drop of 483 points. The possibility of northbound funds selling cannot be ruled out, suggesting the Hang Seng Index may trade weakly lower today, with the key 24,000 level under renewed pressure. (vs)
