Hong Kong Bourse May Give Up Support At 28,000 Points

The Hong Kong stock market has moved lower in two of three trading days since the end of the four-day winning streak in which it had soared almost 1,450 points or 5.3 percent. The Hang Seng Index now rests just above the 28,185-point plateau and it’s predicted to open lower again on Wednesday.

The global forecast for the Asian markets is soft on pessimism over the outlook for interest rates. The European and U.S. markets were down and the Asian bourses are expected to open in similar fashion.

The Hang Seng finished sharply lower on Tuesday following losses from the financials, properties, casinos and oil and insurance companies.

For the day, the index tumbled 327.02 points or 1.15 percent to finish at 28,185.98 after trading between 28,066.13 and 28,470.10.

Among the actives, CSPC Pharmaceutical plummeted 2.27 percent, while AAC Technologies plunged 2.18 percent, Galaxy Entertainment tumbled 1.96 percent, Tencent Holdings skidded 1.80 percent, Sands China retreated 1.76 percent, CNOOC declined 1.49 percent, China Life Insurance dropped 1.45 percent, Ping An Insurance shed 1.33 percent, Industrial and Commercial Bank of China lost 1.32 percent, CITIC fell 0.89 percent, BOC Hong Kong sank 0.82 percent, New World Development slid 0.81 percent, China Mengniu Dairy added 0.67 percent, AIA Group dipped 0.54 percent, China Petroleum and Chemical (Sinopec) dropped 0.38 percent, China Mobile lost 0.35 percent, WH Group rose 0.26 percent and Power Assets Holdings and Hong Kong & China Gas were unchanged.

The lead from Wall Street is negative as stocks opened lower Tuesday and fell further into the red as the session progressed.

The Dow shed 179.32 points or 0.67 percent to 26,548.22, while the NASDAQ lost 120.98 points or 1.51 percent to 7,884.72 and the S&P 500 fell 27.97 points or 0.95 percent to 2,917.38.

The weakness on Wall Street partly reflected a negative reaction to a Conference Board report showing a sharp drop in U.S. consumer confidence in June. Also, the Commerce Department reported a steep decline in new home sales in the U.S. in May.

Additional selling pressure followed comments from Federal Reserve Chairman Jerome Powell, who reiterated the Fed will “act as appropriate” to sustain the economic expansion but did not signal the imminent interest rate cut currently being priced in by the markets.

Crude oil futures ended little changed on Tuesday, as traders weighed demand prospects and global crude supply position. West Texas Intermediate crude oil futures for August ended down $0.07 or less than 0.1 percent at $57.83 a barrel.