EBC Markets Briefing | Chinese stocks are great again

The Hang Seng Index rose Friday but faces a weekly loss, as Chinese tech stocks outpace US peers, a trend likely to continue.

The Hang Seng Index rallied on Friday, but was heading for a weekly loss. A blistering rally in Chinese tech megacaps this year has left their once-unbeatable US peers in the dust, which is widely expected to continue.

Before DeepSeek cause a splash, the Nasdaq 100 had notched yet another record, while Chinese stocks were still marred by years of regulatory crackdown and a tepid consumption recovery.

A multi-year run in US big tech stocks, led by Nvidia, has hit a stumbling block as investors question the validity of their sky-high valuations and demand ever more in earnings surprises.

Still the benchmark index is priced at 7 times its projected 12-month earnings, compared to 20 times for the S&P 500, according to LSEG data. Beijing has planned to step up support for tech companies.

JP Morgan has seen a record amount of US dollars and Chinese yuan being converted into Hong Kong dollars over the past few weeks, pointing to the force of money flowing into Hong Kong stocks.

A broad selloff sent all three major US stock indexes tumbling overnight. A fresh Reuters/Ipsos poll of Americans showed that 57% of poll participants believe Trump's moves to shake up the economy are too erratic.

Goldman Sachs reduced S&P 500 targets this week. Morgan Stanley expects it to drop to 5,500 in H1, but JPMorgan noted the market overplays recession risks, leaving room for a positive surprise.

The Hang Seng Index sat comfortably above 50 EMA, but a bearish MACD divergence signalled a pullback towards the support below 23,200.

EBC Wealth Management Expertise 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 Group Corporate News or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

Regulamento: FCA (UK), ASIC (Australia), CIMA (Cayman Islands)
read more
Fed minutes awaited as risk rally eases, dollar extends recovery

Fed minutes awaited as risk rally eases, dollar extends recovery

US dollar extends rebound, yen edges up too as bond yields creep up again. But stocks mixed amid persisting worries about US economy and debt. Kiwi up after RBNZ signals end of rate cuts, oil eyes OPEC decision. Can Fed minutes and Nvidia earnings turn around sentiment?
XM Group | 14 minutos atrás
Crypto market postpones rally

Crypto market postpones rally

Expert market comment made by Chief Market Analyst Alex Kuptsikevich of the FxPro Analyst Team: Crypto market postpones rally
FxPro | 3 h 51 min atrás
ATFX Market Outlook 28th May 2025

ATFX Market Outlook 28th May 2025

April saw the most significant decline in durable orders in six months, amid persistent uncertainties about tariffs. However, a rebound in the Conference Board’s Consumer Confidence Index provided a pleasant surprise. U.S. equities surged on Tuesday, buoyed by President Trump’s signals on tariff relief and improving consumer sentiment.
ATFX | 7 h 24 min atrás