FX.co ★ Hong Kong Shares Due For Support On Monday

The Hong Kong stock market has experienced a downward trend for two consecutive sessions, shedding over 470 points or 2.5 percent overall. Currently, the Hang Seng Index is positioned slightly below the 19,230 threshold, but there is potential for stabilization on Monday.

The global economic forecast shows optimism, buoyed by an increase in oil prices. European and U.S. markets closed higher on Friday, and Asian markets are expected to follow suit when they open on Monday.

On Friday, the Hang Seng Index closed significantly lower, with widespread losses particularly affecting sectors such as finance, real estate, insurance, and technology. For the day, the index dropped 371.14 points, or 1.89 percent, concluding at 19,229.97 after fluctuating between 19,134.59 and 19,711.40.

Key players on the market saw varied fortunes: Alibaba Group plummeted 4.38 percent, Alibaba Health Info dropped 5.59 percent, ANTA Sports decreased by 1.44 percent, and China Life Insurance saw a notable decline of 7.07 percent. China Mengniu Dairy decreased by 1.52 percent, China Resources Land fell 4.03 percent, and CITIC dropped 3.66 percent. CNOOC experienced a slight dip of 0.58 percent, while CSPC Pharmaceutical, Industrial and Commercial Bank of China both decreased by 1.93 percent. Galaxy Entertainment slipped 1.21 percent, Haier Smart Home went down 1.11 percent, Hang Lung Properties fell 3.43 percent, Henderson Land skidded 2.59 percent, and Hong Kong & China Gas shed 1.50 percent. JD.com eased by 0.29 percent, Lenovo fell by 1.41 percent, Li Auto stumbled 3.61 percent, Li Ning retreated 3.57 percent, Meituan slumped 3.24 percent, New World Development weakened by 3.20 percent. On a positive note, Nongfu Spring rallied 2.76 percent, Techtronic Industries slid 1.32 percent, Xiaomi Corporation increased 1.42 percent, and WuXi Biologics declined 4.00 percent.

Wall Street provided a positive lead, with major indices opening on a high note on Friday and maintaining gains to close in the green. The Dow Jones Industrial Average surged 426.16 points, or 0.97 percent, to reach a record 44,296.51. The NASDAQ rose by 31.23 points, or 0.16 percent, ending at 19,003.65, while the S&P 500 increased by 20.63 points, or 0.35 percent, finishing at 5,969.34. Over the week, the Dow advanced by 2.0 percent, while both the NASDAQ and S&P 500 rose by 1.7 percent.

The stock market strength continued despite a setback for Nvidia (NVDA), which saw a drop of 3.2 percent despite reporting better-than-expected third-quarter earnings and revenue.

In U.S. economic developments, the University of Michigan's revised figures indicated an improvement in consumer sentiment in November, albeit less than anticipated, though the index still reached its highest level since April.

Oil prices saw an upward trajectory on Friday, driven by escalating concerns over the Russia-Ukraine conflict. West Texas Intermediate Crude oil futures for January closed up by $1.14, or 1.6 percent, at $71.24 per barrel, with WTI crude futures recording a gain of 6.5 percent over the week.