Hong Kong: HANG SENG INDEX (.HSI) Lingering fears of global slowdown weigh on investors

Hong Kong: HANG SENG INDEX (.HSI) Lingering fears of global slowdown weigh on investors

Hong Kong: HANG SENG INDEX (.HSI) Lingering fears of global slowdown weigh on investors

Asian shares were mostly lower Thursday, following a slip on Wall Street, as investors watched the continuing trade talks between the U.S. and China.

Japan’s benchmark Nikkei 225 NIK, -1.61% lost 1.5% in early trading, while Australia’s S&P/ASX 200 XJO, +0.65% recouped earlier losses to be up 0.3%. South Korea’s Kospi SEU, -0.82% fell nearly 0.7%. Hong Kong’s Hang Seng HSI, -0.11% was little changed but slightly lower, while the Shanghai Composite SHCOMP, -0.92% was also down less than 0.1%.

Among individual stocks, Toyota 7203, -1.65% , Sony 6758, -1.93% and Japan Steel 5631, -3.49% fell in Tokyo trading. In Hong Kong, China Construction Bank 0939, -1.02% declined after posting its first quarterly drop in profit in almost four years. ACC Technologies 2018, -0.86% also dropped, while Sands China 1928, +0.26% gained. LG Electronics 066570, -2.30% and SK Hynix 000660, -1.50% fell in Korea.

Technology and health care companies drove a broad slide in U.S. stocks Wednesday, erasing some of the market’s solid gains from a day earlier. The sell-off put the Dow Jones Industrial Average on track to end the month with a loss and marked the second drop for the benchmark S&P 500 index this week.

The yield on the benchmark 10-year Treasury note TMUBMUSD10Y, -0.67% continued to decline, raising some fears about a possible recession within the coming year.

The S&P 500 SPX, -0.46% dropped 13.09 points, or 0.5%, to 2,805.37. The Dow DJIA, -0.13% slid 32.14 points, or 0.1%, to 25,625.59. The Nasdaq composite COMP, -0.63% lost 48.15 points, or 0.6%, to 7,643.38.

Investors are still waiting to see how the U.S. and China will resolve their costly trade dispute, with high-level talks between Washington and Beijing scheduled to resume.

The Trump administration and Chinese officials are about to hold their eighth round of trade talks in Beijing with several tough issues unresolved, including a timetable for lifting tariffs and a way to enforce any agreement.

Many analysts say they expect some limited agreement to be reached in the coming weeks or months. Yet it’s unclear how far any accord would go.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 29,470.53.

The projected lower bound is: 28,033.76.

The projected closing price is: 28,752.14.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 24.5106. This is not an overbought or oversold reading. The last signal was a buy 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 50.31. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 22 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -55. This is not a topping or bottoming area. The last signal was a sell 5 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 4 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -24.221 at 28,704.029. Volume was 21% below average (neutral) and Bollinger Bands were 33% narrower than normal.

Open High Low Close Volume___
28,663.19928,816.59028,558.80128,704.0291,384,823,936

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 28,991.60 28,292.43 27,465.07
Volatility: 17 16 22
Volume: 1,752,422,656 1,861,472,256 1,842,527,744

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

HANG SENG INDEX is currently 4.5% above its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect volume flowing into and out of .HSI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .HSI and have had this outlook for the last 2 periods.

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