KGI Asia Commentary
Hang Seng Index fell 120 points on Thursday
The Hang Seng Index fell 120 points or 0.7% to 16,961 on Thursday. HSTECH fell 52 points or 1.4% to 3,603 and HSCEI fell 25 points or 0.4% to 5,906. Daily market turnover was HK$113.1bn.
Dow snaps three-day winning streak after inflation data
The Dow ended lower on Thursday, snapping a three-day winning streak, as data showing higher-than-expected inflation and signs that consumers were cutting back on spending dampened investor sentiment. The Dow Jones index fell 137.66 points to close at 38905.66 points, a decrease of 0.35%. The Nasdaq fell 0.3% to 16,128.53, and the S&P 500 fell 0.29% to close at 5,150.48. Under Armor shares fell 10% as investors expressed concerns about the sportswear retailer's strategy after changing CEO. Shares of electric car maker Fisker fell 51% after the Wall Street Journal reported that the company hired advisers for a possible bankruptcy filing. Robinhood shares surged 5% after the company reported strong growth in assets under custody in February, while Dollar General shares soared 5.6% as the discount retailer forecast upbeat sales in 2024, anticipating a steady flow of price-conscious shoppers. needs. Shares of U.S. Steel fell more than 6% as U.S. President Joe Biden expressed concern about U.S. Steel being acquired by Japan's Nippon Steel. Biden said it was critical that U.S. Steel remain an American company.
IEA expects OPEC+ production cuts to lead to oil supply shortages this year
The International Energy Agency (IEA) said global oil markets will be hit by a supply shortage this year rather than a glut as previously forecast, as OPEC+ is likely to continue production cuts in the second half of the year. The IEA also raised its forecast for global demand growth this year to 1.3 million barrels per day, reflecting a stronger U.S. economic outlook and increased fuel demand for container ships bypassing the Red Sea. Global oil demand is expected to reach a record 103.2 million barrels per day this year.
PPI higher than expected
Data released on Thursday showed that the overall PPI increased by 0.6% month-on-month in February, and the year-on-year increase also accelerated to 1.6%, much higher than the 1.1% expected. Excluding food and energy prices, core PPI rose 0.3% in February, up 2% year-on-year, both exceeding expectations. After the data was released, the market was betting that the Federal Reserve would start cutting interest rates in July. U.S. 10-year Treasury yields rose about 10 basis points.
Hong Kong Stock Connect had a net inflow of HK2.60bn on Thursday, of which Sinopec (386) had the largest net inflow, reaching HK$0.37bn; followed by China Mobile (941). Tracker Fund (2800) recorded the largest net outflow at HK$0.37bn, followed by Meituan (3690).
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