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Hang Seng futures are currently trading at 23989-lower by 3.80% as compared to the previous closing price. The contract closed in the negative territory in the last trading session.
In the Cash Markets, the Hang Seng index dropped 2.27% to close at 24,480.15 on Thursday. The index today declined the most in about three weeks.
The Hang Seng index fell after a downbeat economic outlook from the US central bank rekindled growth concerns.
The index was up around 10% from end-May levels before today’s session.
The US central bank on Wednesday forecasted the US economy would contract 6.5% this year and unemployment would still be at 9.3% at year’s end.
Data on Wednesday showed that core US consumer prices dropped for a third consecutive month in the last month. Real estate and financials were among the worst-performing sectors.
Many US-listed China’s companies are seeking secondary listings in the Asia financial hub.
The Hang Seng index has added 0.47% so far this week.
The Hang Seng China Enterprises Index also dropped 1.96% to close at 9,944.60 on Thursday. For the week, the index is down 1.21%.
Top losers in the index include- Galaxy Entertainment Group Ltd (fell 5.1%), HSBC Holdings PLC (declined 4.8%) and China Unicom Hong Kong Ltd (dropped 4.3%) on Thursday.
On the economic front, Hong Kong’s Industrial Production for the first quarter is scheduled to be released on Friday. Industrial Production is expected to fall by 1.5% on a year-on-year basis.
On the technical front, the RSI is currently at 49.18% and suggests that the market can move in the downward direction. The current price is below the MA5. The %K has crossed the %D from above to the downside at around 91% and suggests that the market can move in the downward direction.
Overall Bias is Negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Sell At 24050 Take Profit At 23800 Stop Loss At 24175