The U.S. reported that the year-on-year CPI for September rose 3.7%, higher than the market expectation of 3.6% and the previous value of 3.4%. The month-on-month increase of 0.6% met expectations. The core CPI for September, excluding food and energy, rose 2.6% year-on-year, also higher than the expected 2.5% and the previous value of 2.4%. The month-on-month increase of 0.3% exceeded the expected 0.2%. The inflation data exceeding expectations boosted rate hike expectations. The yield on the U.S. 10-year Treasury bond surged briefly above 5.3%, but subsequently attracted bargain buyers, causing the yield to quickly retreat to around 5.1%. Interest rate futures indicate the probability of a 25 basis points rate hike in October has risen to nearly 30%.
International aluminum prices responded with a decline. The current price on the London Metal Exchange (LME) dropped 1.53%, trading at $2,989.7 per ton, breaking below the $3,000 threshold, reaching levels last seen at the end of last December.
Currently, the Hang Seng Index stands at 24,012, down 301 points or 1.2%, with main board turnover exceeding HK$102.9 billion. The Hang Seng China Enterprises Index stands at 8,079, down 104 points or 1.3%. The Hang Seng Tech Index stands at 4,059, down 114 points or 2.7%. (am)