Monday, November 11, 2019

(HKSFC CE No. AGO928)

Market Highlights
Overseas markets
Hang Seng Index Hang Seng China Enterprise Index Shanghai Comp
 US markets were steady last Friday despite US President Trump dispelling news (HSI) (HSCEI) (SSEC)
that tariffs would be rolled backed during Phase 1 of the US-China tariff deal. Open 27894.56 10938.70 2993.97
The DJIA/S&P500/NASDAQ closed up 0.02%/0.26%/0.48% at 27,681points/ High 27894.56 10940.62 2998.76
3,093points/8,475points. Healthcare, tech, and consumer services supported Low 27582.29 10842.64 2962.84
Market Highlights

indices.
Close 27651.14 10882.30 2964.18
Change -196.09 -53.59 -14.52
China/Hong Kong markets
(Reuters)
 Profit-taking and trade deal concerns sent the HSI diving by nearly 200points last
Friday. Local property, pharmaceuticals, telecoms, and tech all declined, but
autos rallied. The HSI/HSCEI ended at 27,651points (-196points or -
0.70%)/10,882points (-53points or -0.49%). Turnover rose to HK$79.6bn.
 A-shares tumbled last Friday with the SSE closing near day-lows at 2,964points
(-14points or -0.49%). Reports that the White House was against Beijing’s
request for rolling back tariffs busted recent positive sentiment in the market.
 HSI(Nov) AT futures dipped 78point (-0.28%) to 27,602point Last Friday as US
President Trump iterated that he has not decided on rolling back tariffs on
Chinese goods. Futures closed at 49point discount to the HSI with
15,304contracts traded.
 The HSI ended its six- day winning streak but overall selling pressure was not
severe with turnover rising only slightly. US-China trade will be at the forefront of
concerns this week. The HSI should be supported by its 250-day MA
(c.27,424points) but would revert to its 20-day MA (c.27,015points) should the
former support fail.

Trading Idea – “JPY likely to rebound on rising trade deal angst”

 The USD/JPY exchange rate has risen above its 200-day MA (c.109.03) as US-
China trade tensions ease and the need for safe haven assets decline.
 However, even before the latest tariff rollback fiasco, the JPY had overly USD/JPY exchange rate daily chart [Source: Reuters]
weakened with the USD/JPY rising by c.4% since August lows.
 With Phase 1 of the US-China trade deal still in flux, investors would be wise to
diversify back into the JPY.
 Short USD/JPY futures.

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 Monday, November 11, 2019

Contacts
CMF (HK) Precious Metals Email: PreciousMetalsHKTeam@cmschina.com.hk

WILLIAM CHAN CE No. AGM443 williamchan@cmschina.com.hk

SIMON WONG CE No. BBX031 simonwong@cmschina.com.hk

CMF (HK) Energy Products Email: EnergyHKTeam@cmschina.com.hk

VICTOR CHEW CE No. AMY782 victorchew@cmschina.com.hk

Highlights

CMF (HK) Base Metals Email: BaseMetalsHKTeam@cmschina.com.hk

Highlights

VICTOR CHEW CE No. AMY782 victorchew@cmschina.com.hk

CMF (HK) Iron Ore Email: BulkHKTeam@cmschina.com.hk

VICTOR CHEW CE No. AMY782 victorchew@cmschina.com.hk

CMF (HK) Global Futures Email: GlobalCommoditiesFuturesTeam@cmschina.com.hk

CALVIN NG CE No. AMY869 calvinng@cmschina.com.hk

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