|Day's range||24,899.93 - 25,693.72|
|52-week range||24,540.63 - 30,280.12|
Wall Street recovered some of its lost ground on Friday, but the gains were not enough to prevent US equities from posting their third consecutive weekly decline, underlining investor fears about the precariousness of the global economy. The S&P 500 advanced 1.4 per cent in a broad based rally with industrials, financials and tech leading the way with gains of about 1.9 per cent each. The Nasdaq Composite rose 1.7 per cent. That followed gains in European and Asian markets.
Hong Kong’s stock market rout has lopped about $15bn off the net worth of its 10 richest tycoons, as clashes between police and protesters that have weighed on asset prices show little sign of letting up. Li Ka-shing, Hong Kong’s richest man, has racked up paper losses of more than $3bn since the end of July, according to Financial Times calculations based on Bloomberg data tracking the billionaires’ disclosed positions in listed companies. , head of Henderson Land, and Lee Man-tat, chairman of the parent company of sauce maker Lee Kum Kee, have seen their fortunes drop almost one-tenth in August.
Hong Kong’s tumbling equity market is stoking fears for the economy, as well as the stability of the capital markets.
A sharp rally in government bonds set fresh records on Thursday, with the yield on 30-year US government bonds falling below 2 per cent for the first time as investors sought safety amid growing fears over the global economy and renewed trade tensions. Traders have dumped riskier assets such as stocks and crude oil and moved into perceived haven assets including bonds, driven by a growing list of interconnected fears including trade tensions between the US and China and slowing global growth. In a new sign of the flight into bonds, the 30-year US Treasury bond yield dropped to as low as 1.916 per cent, its lowest level on records that go back to the 1970s and the first time it has fallen below 2 per cent. It was recently sitting at 1.958 per cent. The UK 30-year gilt also set a new record, falling below 1 per cent for the first time.
Weak economic data from Germany and China renewed investor jitters over the health of the global economy, sending US and European stocks lower and reigniting a rally in government bonds as a closely watched part of the US yield curve inverted for the first time in more than a decade. Wall Street was sharply lower, with the S&P 500 down 2.9 per cent in a broad-based decline to 2840.60 — the lowest close in more than two months — with energy and financial stocks the biggest laggards. The Nasdaq Composite and Dow Jones Industrial Average both shed 3 per cent.
US stocks and China’s currency rallied sharply on Tuesday after Washington announced a delay to some additional tariffs on Chinese imports, allaying concerns over a trade row that many investors feared would tip the US into recession. The S&P 500 snapped a two-day losing streak and clawed back heavy losses from the prior day following the announcement from the Trump administration, while perceived haven assets such as US Treasuries, gold and the Japanese yen sold off. Chinese and Hong Kong equities followed the US benchmark higher with the Hang Seng up as much as 1.7 per cent at one point in morning trade and China’s CSI 300 adding as much as 1.4 per cent.
The benchmark Hang Seng index has dropped 9 per cent in August, taking it into the red for 2019 amid a sell-off in both Hong Kong-focused stocks and those at risk from broader unrest. Hong Kong is the only one among 24 developed stock markets tracked by Bloomberg now in negative territory for the year. Five years ago the Hong Kong and broader Chinese economy were “a lot more healthy”, cautioned an investment director at one global asset manager.
The S&P 500 fell 0.7 per cent, paring some of its losses after having been down more than 1 per cent at its low for the day. The Nasdaq Composite fell 1 per cent on weakness in technology shares. The Dow Jones Industrial Average slipped 0.3 per cent.
Many Chinese investors are piling into products that provide a hedge against a stock market collapse, convinced now that the Sino-U.S. trade war will drag on and, if anything, intensify. The dramatic shattering of a month-long truce between Beijing and Washington this month has dashed hopes of a trade deal, and these investors are bracing for more bad news, such as further sanctions on Chinese companies, pressure on ratings agencies to downgrade China’s credit rating and even moves to drive up the price of oil. Wee May Ling, a Singapore-based investment manager at Janus Henderson Investors, said sentiment changed swiftly this week as China's currency fell and Chinese firms stopped purchases of U.S. farm products.
On Monday as Carrie Lam, Hong Kong’s embattled chief executive, appeared in public before television cameras for the first time in days in an appeal for order, the Hong Kong Stock Exchange began dropping. , how much was because of the intensifying the trade war between Beijing and Washington, and how much of the drop reflected dismay that Ms Lam had no plan B to reverse a situation on the streets that had been spinning out of control. Before this month, investors monitoring the Hong Kong Stock Exchange in isolation had little reason to fear the chaos on the streets of Hong Kong.
The losses came after the US Treasury said China had “taken concrete steps to devalue its currency” in an escalation of the dispute between the two countries, after the renminbi fell through the key threshold of Rmb7 to the dollar on Monday. The offshore traded Chinese currency, which is not subject to the trading band set by the country’s central bank, weakened 0.4 per cent to hit Rmb7.128 to the dollar, the lowest since its creation in 2010.
Stock markets around the world fell hard on Monday on fears that China's willingness to let the yuan slide in response to the latest U.S. tariff threat could further aggravate trade-related tensions between the world's two largest economies. China on Monday let the yuan tumble beyond the 7-per-dollar level for the first time in more than a decade, in a sign Beijing might be willing to tolerate further currency weakness after U.S. President Donald Trump vowed last week to impose 10% tariffs on the remaining $300 billion of Chinese imports from Sept. 1. A weaker yuan - and a stronger dollar - pose challenges for U.S. companies that do substantial business in China, as it effectively raises the cost of their goods for Chinese customers.
Stock futures were slightly higher Monday at the start of a crowded week for market-moving events, including the Federal Reserve’s latest monetary policy decision, release of the July jobs report and quarterly earnings results from a host of major companies.