The Economic Information Daily reported on the 15th that the U.S. Consumer Price Index (CPI) rose 3.7% year-on-year in September, accelerating from 3.4% in August and slightly higher than the expected 3.6%. The monthly increase widened to 0.6%, the largest monthly gain since April, in line with market expectations. With inflation remaining high, interest rate futures data indicate that the market now expects at least one more rate hike before year-end. Coupled with a sharp decline in AI-related stocks, all three major U.S. indices fell on Wednesday (14th). The Dow Jones reversed earlier gains to close down 48 points, or 0.09%, at 51,621; the S&P 500 dropped 1.11% to 7,718; the Nasdaq plunged 1.88% to 26,692; and the Philadelphia Semiconductor Index tumbled 4.3%.
*Night session futures at 200-point discount, ADRs mostly lower*
The Golden Dragon Index, which tracks U.S.-listed Chinese stocks, fell 1.39%. Alibaba rose 0.29% to $111.17; JD.com declined 0.37% to $26.68; Baidu dropped 2.24% to $81.86; Li Auto fell 4.17% to $11.26; XPeng dropped 3.38% to $9.42; NIO declined 4.21% to $3.41; and Bilibili plunged 4.74% to $14.27.
The Hang Seng Index night session futures closed at 24,074, down 259 points, at a discount of 240 points. In overnight ADR trading, Meituan (03690) ADR was 2.49% lower than its Hong Kong counterpart, equivalent to HK$75.2; CK Hutchison (00001) ADR was 1.00% lower, equivalent to HK$65.7; Tencent (00700) ADR was 1.30% lower, equivalent to HK$417.9; Xiaomi (01810) ADR was 1.88% lower, equivalent to HK$26.5; HKEX (00388) ADR was 1.25% lower, equivalent to HK$368.9; HSBC (00005) ADR was 0.40% lower, equivalent to HK$147.4; and AIA (01299) ADR was 1.18% lower, equivalent to HK$1.9.
*Rising U.S. inflation fuels rate hike expectations; Hang Seng Index likely to open lower*
The Hang Seng Index traded weakly yesterday despite some intraday rebound, briefly gaining over 100 points, causing some near-the-money bearish warrants to be called. However, bears repositioned, increasing the outstanding bearish warrant inventory by several hundred to a total of 9,830. The heaviest concentration remains in the 24,600 to 24,699 range, rising to 965 warrants. On the bullish side, despite resistance at higher levels yesterday, some bulls remained aggressive. The total number of outstanding bullish warrants slightly increased to 8,828, with all new positions concentrated in near-the-money ranges, particularly 383 new positions added across the newly opened 24,000 to 24,199 ranges. However, given the decline in night session and 'black session' futures, these bullish warrants are likely to be triggered.
The Singapore HS50 index, known as the 'black session' futures, is currently down 267 points at 24,027, at a discount of 287 points, suggesting the Hang Seng Index is likely to open around 200 points lower.
U.S. inflation for September came in higher than expected year-on-year, causing the yield on the 10-year U.S. Treasury to spike by 11.88 basis points to 5.3272%, before retreating slightly. Nonetheless, markets are expected to remain cautious, putting pressure on interest-rate-sensitive tech stocks. Wall Street's AI-related stocks continued to correct, with chipmaker Nvidia (US.NVDA) down 3% and Dell (US.DELL) plunging 11%. Hong Kong peers are likely to follow lower, with attention on Lenovo Group (00992)'s performance today. Overall, the Hang Seng Index is expected to decline further today, with a higher likelihood of breaking below the 10-day moving average (around 24,196), possibly testing the 24,000 level. (vs)
*Night session futures at 200-point discount, ADRs mostly lower*
The Golden Dragon Index, which tracks U.S.-listed Chinese stocks, fell 1.39%. Alibaba rose 0.29% to $111.17; JD.com declined 0.37% to $26.68; Baidu dropped 2.24% to $81.86; Li Auto fell 4.17% to $11.26; XPeng dropped 3.38% to $9.42; NIO declined 4.21% to $3.41; and Bilibili plunged 4.74% to $14.27.
The Hang Seng Index night session futures closed at 24,074, down 259 points, at a discount of 240 points. In overnight ADR trading, Meituan (03690) ADR was 2.49% lower than its Hong Kong counterpart, equivalent to HK$75.2; CK Hutchison (00001) ADR was 1.00% lower, equivalent to HK$65.7; Tencent (00700) ADR was 1.30% lower, equivalent to HK$417.9; Xiaomi (01810) ADR was 1.88% lower, equivalent to HK$26.5; HKEX (00388) ADR was 1.25% lower, equivalent to HK$368.9; HSBC (00005) ADR was 0.40% lower, equivalent to HK$147.4; and AIA (01299) ADR was 1.18% lower, equivalent to HK$1.9.
*Rising U.S. inflation fuels rate hike expectations; Hang Seng Index likely to open lower*
The Hang Seng Index traded weakly yesterday despite some intraday rebound, briefly gaining over 100 points, causing some near-the-money bearish warrants to be called. However, bears repositioned, increasing the outstanding bearish warrant inventory by several hundred to a total of 9,830. The heaviest concentration remains in the 24,600 to 24,699 range, rising to 965 warrants. On the bullish side, despite resistance at higher levels yesterday, some bulls remained aggressive. The total number of outstanding bullish warrants slightly increased to 8,828, with all new positions concentrated in near-the-money ranges, particularly 383 new positions added across the newly opened 24,000 to 24,199 ranges. However, given the decline in night session and 'black session' futures, these bullish warrants are likely to be triggered.
The Singapore HS50 index, known as the 'black session' futures, is currently down 267 points at 24,027, at a discount of 287 points, suggesting the Hang Seng Index is likely to open around 200 points lower.
U.S. inflation for September came in higher than expected year-on-year, causing the yield on the 10-year U.S. Treasury to spike by 11.88 basis points to 5.3272%, before retreating slightly. Nonetheless, markets are expected to remain cautious, putting pressure on interest-rate-sensitive tech stocks. Wall Street's AI-related stocks continued to correct, with chipmaker Nvidia (US.NVDA) down 3% and Dell (US.DELL) plunging 11%. Hong Kong peers are likely to follow lower, with attention on Lenovo Group (00992)'s performance today. Overall, the Hang Seng Index is expected to decline further today, with a higher likelihood of breaking below the 10-day moving average (around 24,196), possibly testing the 24,000 level. (vs)
