The FTSE China A50 index traded higher on Wednesday after a surprise slowdown in US inflation scaled back market expectations for interest rate hikes. Importantly service costs moderated significantly last month.
Trump warned of potential strikes against Iran's power plants and bridges soon if negotiations to resolve the conflict do not restart. He earlier dropped a proposed tariff on shipping through the Strait of Hormuz.
China's exports surged in June, buoyed by orders for chips to fuel the global AI boom and cars. Meanwhile, domestic demand remained week, deepening reliance on overseas buyers.
GDP growth slowed in Q2, trending toward the lower bound of Beijing's annual target. Analysts expect Beijing to rely more heavily on fiscal stimulus to cushion any further slowdown.
To shield domestic producers from high prices, the Asian country is drawing down its energy stockpiles. Consequently, the world's top energy buyer saw its June oil imports plummet to their lowest level since October 2016.
Mainland Chinese investors turned buyers in June, channeling a net HK$27.1 billion into Hong Kong stocks via Stock Connect. Now the A-share tech stocks have far more hefty valuations than their HK peers.
EBC Financial Group analyst says, the FTSE China A50 formed a massive long-lower-shadow "pin bar", which triggered a V-shaped rally. A deeper pullback toward the 15,155 zone may offer a significantly better risk-to-reward ratio.
Asset recap
As of market close on 14 July, among EBC major products, Goldman Sachs shares led gains on strong Q2 results that are driven by robust activity in its trading businesses and increases in M&A and underwriting revenue.
IBM shares logged the worst day on record after the company released preliminary Q2 results that fell short of expectations. CEO Arvind Krishna blamed the shortfall on weakness in the software and infrastructure business.
SK Hynix led a broad rally in South Korean stocks, tracking a rebound in US semiconductor names after a sharp sell-off earlier this week. Still some investors warned that enthusiasm around AI is becoming stretched.
A portfolio diagnostic is critical to managing tail risk. EBC Turbo leverages a proprietary scoring model to run a six-dimensional analytics scan within 5 seconds, mapping your risk-return dynamics and decoding your trading DNA.
EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
คำชี้แจง (Disclaimer) : เนื้อหาข้างต้นเป็นเพียงมุมมองของผู้เขียนแต่เพียงผู้เดียว และไม่ได้แสดงหรือสะท้อนถึงจุดยืนอย่างเป็นทางการของ Followme แต่อย่างใด Followme ไม่รับผิดชอบต่อความถูกต้อง ความครบถ้วน หรือความน่าเชื่อถือของข้อมูลที่ปรากฏ และจะไม่รับผิดชอบต่อการดำเนินการใด ๆ ที่เกิดขึ้นจากเนื้อหานั้น เว้นแต่จะมีการระบุไว้เป็นลายลักษณ์อักษรอย่างชัดเจน
