Categories: Market Overview

Hang Seng meltdown

Our attention has also been drawn to the Hang Seng Index, which is down 20% from its early October peak. Technically, this is the start of a bear market after a sixth week of declines and a pullback to the May peak.

Trading volumes in Chinese equities are breaking records as investors have conflicting views on the market outlook. Many say the stimulus announced is insufficient, while some fear trade wars. Only 15% of the 40% gain since the September lows, when the rally began, has been retraced. And that’s still more than 30% from the lows at the start of the year.

On the bearish side, the index has two peaks near the same 22500 area at the beginning of last year and the end of this year. This has allowed the Hang Seng to recover only half of its original decline from a high in early 2021 above 31000 to a low in late 2022. It is too early to say whether we are in for a third test of 14500, the low of the last two years, but there is no sign of a turn to the upside either, suggesting further declines in the medium term.

The FxPro Analyst Team

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

Share
Published by
The FxPro Analyst Team
Tags: Hang Seng

Recent Posts

SP500 quiet correction

The S&P500 reached the 6000 mark but faced resistance due to fatigue and dollar appreciation.…

1 hour ago

The third day of Crypto cooling off

The crypto market has continued to cool down for the third day, with a 1.7%…

4 hours ago

GBPUSD Wave Analysis 14 November 2024

- GBPUSD reversed from strong support level 1.2665 - Likely to rise to resistance level…

18 hours ago

USDCAD Wave Analysis 14 November 2024

- USDCAD broke resistance level 1.3950 - Likely to rise to resistance level 1.4050 USDCAD…

18 hours ago

The dollar has reached range limits

The US dollar has strengthened, reaching the upper boundary of its trading range. The British…

21 hours ago

Crypto: Tug-of-war at new altitude

Cryptocurrencies continued to surge, pushing the total cap to $3 trillion. Bitcoin has gained nearly…

21 hours ago

This website uses cookies