HK50 – Daily Chart
The price of the Hang Seng bounced from resistance at the psychological 20,000 level, and in the week ahead, it will be important to see if the index can clear that level. The next target on the upside lies at 22,719.
The Caixin services PMI index will be released at 9:45 am HKT on Monday, and traders are looking for a move from 51.4 to 51.7. A stronger number could boost shares in Asia and globally.
Later in the day, markets will focus on the planned certification of Donald Trump’s election win. The January 6 ritual will then move to a January 10 sentencing for the incoming President after his previous conviction for a hush money trial. The judge has said jail time will not be recommended, but there may be a curve ball for markets in the days ahead. The dollar would also be in the crosshairs as the events unfold this week.
European data at 4:55 pm-5 pm HKT could also move the USD with German and Eurozone PMI data.
On the Hong Kong exchange, a rush of companies announced plans to list shares in the country by the end of January. The move boosts the country’s IPO outlook, with six firms saying they intend to hold offerings by late January, seeking to raise HK$3.3 billion. Those include Chinese toy maker Bloks Group Ltd, where retail traders have sought to borrow $60 billion to participate in the offering.
In the year ahead, we can see continued support from the Chinese government to boost the economy, and some early data could help push the indices higher in the short term, starting with Monday’s services PMI figures.