{Economic Information Daily, 9th exclusive} Middle East tensions continue to escalate, with increasing incidents of oil tankers being attacked in the Strait of Hormuz and Yemen's Houthi militants launching attacks on Saudi Arabia; coupled with hurricanes hitting the Gulf of Mexico potentially affecting regional oil supply, oil prices surged sharply, with New York crude futures rising over 5%. U.S. bond yields rose initially then retreated, while the Dow found support at lower levels. However, reports indicate that OpenAI's annualized revenue by the end of September was only close to $50 billion, $20 billion lower than previously implied figures. The news hit AI-related stocks, causing chip stocks to plunge and dragging the Nasdaq down 1.71% at one point, eventually closing 1.25% lower at 27,193 points. The Dow reversed, gaining 51 points or 0.1%, closing at 51,231 points; the S&P 500 fell 0.47%, closing at 7,765 points.
*Overnight futures slightly premium, ADRs mostly higher*
The Golden Dragon Index, reflecting the performance of Chinese概念股, fell 0.62%. Alibaba dropped 1.21%, closing at $105.70; JD.com fell 0.44%, closing at $26.91; Baidu declined 1.62%, closing at $83.92; Li Auto dropped 0.82%, closing at $10.90; XPeng fell 0.31%, closing at $9.55; NIO plunged 3.67%, closing at $3.41; Bilibili declined 0.47%, closing at $14.85.
The overnight Hang Seng Index futures closed at 23,802, up 29 points, 16 points premium. In terms of overnight ADRs, Meituan (03690) ADR was 0.19% higher than its Hong Kong counterpart, equivalent to HK$69.5; CK Hutchison (00001) ADR was 0.07% lower than its Hong Kong counterpart, equivalent to HK$66.0; Tencent (00700) ADR was 0.57% higher than its Hong Kong counterpart, equivalent to HK$413.7; Xiaomi (01810) ADR was 0.17% higher than its Hong Kong counterpart, equivalent to HK$23; HKEX (00388) ADR was 0.64% higher than its Hong Kong counterpart, equivalent to HK$377.4; HSBC (00005) ADR was 1.94% higher than its Hong Kong counterpart, equivalent to HK$145.4; AIA (01299) ADR was 1.85% higher than its Hong Kong counterpart, equivalent to HK$70.5.
*HSBC turning higher may help HSI rebound, but weak A-shares could restrain gains*
The Hang Seng Index fell nearly 400 points intra-day yesterday, wiping out bullish warrants en masse, with over a thousand bullish warrants falling into forced call range. The latest bullish warrant holdings decreased by over a thousand to 8,488 contracts, with the heavy concentration zone shifting down to the 23,600-23,699 range, holding 1,206 contracts. On the bearish warrant side, the latest holdings slightly decreased by dozens to 7,977 contracts. Although the bearish warrant heavy zone remains in the 24,500-24,599 range, the quantity dropped to 504 contracts, with holdings clearly reduced across multiple groups, while only a few closer strike price groups saw increases, including 468 new contracts added by issuers in the newly opened 24,100-24,299 hundred-point range.
The Singapore HS50 Index, known as the 'black market futures', is currently up 147 points at 23,803, 18 points premium, suggesting the Hang Seng Index is expected to open nearly flat, with a daily range likely within 100 points.
Overnight U.S. bond yields rose then softened, while oil prices surged, creating concerns for the stock market. Although HSBC's overnight ADR turned higher, closing back above $100, equivalent to nearly 2% higher than yesterday's Hong Kong closing price, suggesting its share price may halt declines and rebound today. However, as the UK's proposed windfall tax on the banking sector remains unresolved, investors are expected to remain cautious about chasing gains, suggesting a moderate rise. Additionally, mainland A-shares, resuming trading after a holiday yesterday, closed lower, with the Shanghai Composite Index briefly falling below 3,800, reaching a two-month low. If A-shares continue weakening today, it may dampen the Hang Seng Index's rebound momentum. (vs)
*Overnight futures slightly premium, ADRs mostly higher*
The Golden Dragon Index, reflecting the performance of Chinese概念股, fell 0.62%. Alibaba dropped 1.21%, closing at $105.70; JD.com fell 0.44%, closing at $26.91; Baidu declined 1.62%, closing at $83.92; Li Auto dropped 0.82%, closing at $10.90; XPeng fell 0.31%, closing at $9.55; NIO plunged 3.67%, closing at $3.41; Bilibili declined 0.47%, closing at $14.85.
The overnight Hang Seng Index futures closed at 23,802, up 29 points, 16 points premium. In terms of overnight ADRs, Meituan (03690) ADR was 0.19% higher than its Hong Kong counterpart, equivalent to HK$69.5; CK Hutchison (00001) ADR was 0.07% lower than its Hong Kong counterpart, equivalent to HK$66.0; Tencent (00700) ADR was 0.57% higher than its Hong Kong counterpart, equivalent to HK$413.7; Xiaomi (01810) ADR was 0.17% higher than its Hong Kong counterpart, equivalent to HK$23; HKEX (00388) ADR was 0.64% higher than its Hong Kong counterpart, equivalent to HK$377.4; HSBC (00005) ADR was 1.94% higher than its Hong Kong counterpart, equivalent to HK$145.4; AIA (01299) ADR was 1.85% higher than its Hong Kong counterpart, equivalent to HK$70.5.
*HSBC turning higher may help HSI rebound, but weak A-shares could restrain gains*
The Hang Seng Index fell nearly 400 points intra-day yesterday, wiping out bullish warrants en masse, with over a thousand bullish warrants falling into forced call range. The latest bullish warrant holdings decreased by over a thousand to 8,488 contracts, with the heavy concentration zone shifting down to the 23,600-23,699 range, holding 1,206 contracts. On the bearish warrant side, the latest holdings slightly decreased by dozens to 7,977 contracts. Although the bearish warrant heavy zone remains in the 24,500-24,599 range, the quantity dropped to 504 contracts, with holdings clearly reduced across multiple groups, while only a few closer strike price groups saw increases, including 468 new contracts added by issuers in the newly opened 24,100-24,299 hundred-point range.
The Singapore HS50 Index, known as the 'black market futures', is currently up 147 points at 23,803, 18 points premium, suggesting the Hang Seng Index is expected to open nearly flat, with a daily range likely within 100 points.
Overnight U.S. bond yields rose then softened, while oil prices surged, creating concerns for the stock market. Although HSBC's overnight ADR turned higher, closing back above $100, equivalent to nearly 2% higher than yesterday's Hong Kong closing price, suggesting its share price may halt declines and rebound today. However, as the UK's proposed windfall tax on the banking sector remains unresolved, investors are expected to remain cautious about chasing gains, suggesting a moderate rise. Additionally, mainland A-shares, resuming trading after a holiday yesterday, closed lower, with the Shanghai Composite Index briefly falling below 3,800, reaching a two-month low. If A-shares continue weakening today, it may dampen the Hang Seng Index's rebound momentum. (vs)
