HSI
Added 2024-06-03 11:26:16 +0000 UTCWe were expecting a bounce today here to confirm a hold on the 0.38 Fib and this is what we got today, up 1.78%.
Two reasons behind this:
'The Hang Seng soared 323.43 points or 1.79% to end at 18,403.04 on Monday, snapping the downward momentum in the prior four sessions following upbeat Chinese PMI data from private survey data that showed manufacturing activity rose the most in 23 months for May.'
and
'Gains in the Hong Kong market were also tracking regional markets as sentiment was improved as the European Central Bank (ECB) is considered almost certain to trim rates by a quarter point to 3.75% on Thursday, the first time in history it would have eased ahead of the U.S. Federal Reserve. '
Two positive developments this morning but no mention of Chinese policy makers making another move to increase QE, maybe it is not needed with these two catalysts this morning.
We want to see the HSI hold above the 0.38 Fib now and bounce from here, if we can get this then I expect the Chinese ADRs to recover and reverse too.
Good start to the week.
