Chinese stocks underperformed the rally that occurred while they were on holiday closure for a week, as investors counting on Beijing to produce more stimulus were underwhelmed. A key gauge in Hong Kong plunged the most in 16 years and European futures declined. China’s benchmark CSI 300 opened up 11% as trading began after a weeklong holiday. With widely anticipated stimulus measures absent from a press conference in Beijing, the index pared gains to 2%, then rose again. A gauge of Chinese stocks in Hong Kong tumbled the most intraday since 2008 as some investors took profit and rotated to mainland shares. Broader Asian equities dropped after Wall Street was dragged down by a tech selloff, geopolitical angst and bets on a smaller Federal Reserve rate cut. MSCI’s Asia-Pacific share gauge dropped the most in two months, the Treasury curve steepened and oil fell. A briefing by China’s National Development and Reform Commission failed to deliver more stimulus measures after policy announcements before the Golden Week holiday break sent shares in China and Hong Kong surging. From JPMorgan Asset Management to HSBC Global Private Banking, numerous investors questioned the sustenance of that rally. At the NDRC briefing, Chinese officials said they were confident of reaching economic targets this year and promised further support for growth, although they held back from unleashing more stimulus. They said that China would continue to issue ultra-long sovereign bonds next year to support major projects and invest 100 billion yuan ($14 billion) on key strategic areas. There’s some convergence in the markets with investors rotating money from Hong Kong to China, benefiting mainland shares, said Marvin Chen, a Bloomberg Intelligence strategist.
Invesco Ltd. and Nomura Holdings Inc. are also among those viewing the recent rebound with skepticism and waiting for Beijing to back up its stimulus pledges with real money. An overheating of the A-share market and the Chinese government’s delivery on its recently announced policy stimulus are among the risks investors should watch amid the Chinese stock market rally, according to Morgan Stanley. The S&P 500 fell 1% on Monday after notching a four-week winning run. In the wake of Friday’s solid jobs data, Treasuries continued to drop — with the 10-year yield topping 4%. The Fed is “well positioned” to pull off a soft landing for the economy, New York Fed president John Williams told the Financial Times in an interview. The crisis in the Middle East continues to unnerve investors, with fighting escalating Monday on multiple fronts after a year of war. The Israel Defense Forces said it intercepted most of a barrage of rockets fired toward Tel Aviv by Hamas and other Iran-backed groups. Brent crude soared to its highest price since August as speculation increased that Israel may attack Iran’s oil infrastructure. West Texas Intermediate rose early Tuesday. To Dave Sekera at Morningstar, if there is any further geopolitical escalation, that would potentially spur the risk-off trade — with growth shares underperforming value ones.
Nikkei -1.18% Hang Seng -7.54% CSI +4.08% Shanghai +3.15% Shenzen +5.74%
Eur$ 1.0982 CNH 7.0635 CNY 7.0623 JPY 147.97 GBP 1.3091 CHF 0.8539 RUB 96.0824 TRY 34.2784 WTI$ 75.87 Gold 2,646 BTC 62,454 ETH 2,425
S&P -0.04% Nasdaq -0.07% EuroStoxx -0.92% FTSE -0.61% Dax -0.80% SMI -058%
Macro :
- Euro at Risk as Dollar Bulls Emboldened After China Disappoints
- BlackRock Says Stay ‘Risk On’ With Inflation and Rates Cooling
- BlackRock Says Stay ‘Risk On’ With Inflation and Rates Cooling
- Tunisia President Wins Reelection in Ballot Hurt by Weak Turnout
- Pictet Filing Mistakenly Showed $15 Billion Bet on Chinese Bank
Keep an eye on :
Keep an eye on :
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- GOOGL US : Google Talks to Utilities About Nuclear Power for Data Centers
- HOLN SW : Holcim to Buy Ox Engineered Products; No Terms
- IG IM : Italgas Studying Asset Disposals After 2i Rete Gas Deal: CEO
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- JUVE IM : Sheffield United in Takeover Talks With US Investor Group
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- MANU US : Sheffield United in Takeover Talks With US Investor Group
- MBG GY : LG Energy Wins EV Battery Order From Mercedes-Benz Affiliate
- NDX1 GY : Nordex Group Gets 500 MW Orders From Canada
- NYF SS : Nyfosa Divests Properties in Sweden for SEK940m
- TE FP : TechnipFMC Wins Contract From BP in $250m-$500m Range
- Tennet IPO : Tennet Is Said to Select Banks for IPO of German Operations
- TETY SS : Roc Oil Gets Danish Regulatory Approvals for Tethys Oil Offer
- TGS NO : TGS Prelim 3Q Multiclient Investment About $132M
- HO FP : Foxconn Forges Strategic Partnership with Thales Alenia Space
- UCB BB : Biotech UCB Mimics Obesity Drug Stocks With Skin Disease Focus
- ULVR LN : Unilever Spends Over €150m on Europe Homecare Supply Chain: Rtrs
- UNIR IM : Fnac Darty: Minimum Threshold Condition Lowered for Unieuro
- VACN SW : VAT Sees 3Q Sales Falling Short of Low Point of Guidance
- VICO SS : Vicore Pharma Raises About SEK782m in Rights Issue
- DG FP : Vinci to Buy RH Marine, Bakker Sliedrecht; No Terms
- DG FP : Vinci to Buy RH Marine, Bakker Sliedrecht; No Terms
- VOLUE NO : Edison Bidco Says Volue Offer Has All Regulatory Approvals