Hong Kong Shares May Bounce Higher On Thursday

(RTTNews) - The Hong Kong stock market on Wednesday ended the three-day winning streak in which it had collected almost 380 points or 2 percent. The Hang Seng Index now sits just above the 19,740-point plateau although it may find renewed support on Thursday.

The global forecast for the Asian markets is upbeat on an improved outlook for interest rates, although geopolitics may limit the upside. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The Hang Seng finished barely lower on Wednesday following losses from the technology stocks and a mixed picture from the properties and financials.

For the day, the index eased 3.86 points or 0.02 percent to finish at 19,742.46 after trading between 19,615.61 and 19,823.09.

Among the actives, Alibaba Group sank 0.53 percent, while Alibaba Health Info dropped 0.54 percent, ANTA Sports was up 0.06 percent, China Life Insurance shed 0.39 percent, China Mengniu Dairy declined 1.15 percent, China Resources Land gained 0.42 percent, CITIC added 0.45 percent, CNOOC rallied 2.30 percent, CSPC Pharmaceutical tumbled 1.58 percent, Galaxy Entertainment perked 0.14 percent, Haier Smart Home rose 0.38 percent, Hang Lung Properties plummeted 2.27 percent, Henderson Land retreated 1.39 percent, Hong Kong & China Gas gathered 0.17 percent, Industrial and Commercial Bank of China collected 0.21 percent, JD.com tanked 2.00 percent, Lenovo stumbled 1.48 percent, Li Auto lost 0.23 percent, Li Ning dipped 0.12 percent, Meituan fell 0.18 percent, New World Development plunged 2.29 percent, Nongfu Spring skidded 0.71 percent, Techtronic Industries slumped 0.97 percent, WuXi Biologics advanced 0.60 percent and Xiaomi Corporation and CLP Holdings were unchanged.

The lead from Wall Street is positive as the major averages opened higher on Wednesday and remained in the green throughout the session before all ending at record closing highs.

The Dow rallied 308.51 points or 0.69 percent to finish at 45,014.04, while the NASDAQ spiked 254.21 points or 1.30 percent to close at 19,735.12 and the S&P gained 36.61 points or 0.61 percent to end at 6,086.49.

The strength on Wall Street was generated by optimism about the outlook for interest rates following the release of some weaker than expected U.S. economic data.

Payroll processor ADP said private sector employment in the U.S. increased by slightly less than expected in November. Also, the Institute for Supply Management showed U.S. service sector growth slowed more than anticipated last month.

Following the data, CME Group's FedWatch Tool is indicating a 75.5 percent chance the Federal Reserve will lower interest rates by 25 basis points later this month.

However, during remarks later in the afternoon, Fed Chair Jerome Powell reiterated the central bank will take a cautious approach to cutting rates due to the continued strength of the economy.

Crude oil prices tumbled on Wednesday on geopolitical concerns in the Middle East and in the Russia/Ukraine conflict, as well as political chaos in South Korea and France. West Texas Intermediate Crude oil futures for January closed down $1.40 or 2 percent at $68.54 a barrel.