Hang Seng Index Likely To Test 26,000-Point Mark


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(RTTNews.com) - The Hong Kong stock market has finished higher in two straight sessions, advancing almost 360 points or 1.4 percent along the way. The Hang Seng Index now rests just beneath the 25,925-point plateau and the market is looking at another firm lead for Tuesday.

The global forecast for the Asian markets is firm thanks to positive news from Europe, although persistent weakness in crude oil prices may cap the upside. The European and U.S. markets were up and the Asian bourses figure to follow suit.

The Hang Seng finished sharply higher on Monday following gains from the insurance companies, financials, properties and oil stocks.

Among the actives, Ping An Insurance surged 3.99 percent, while Galaxy Entertainment spiked 1.70 percent, China Life climbed 1.25 percent, China Petroleum and Chemical (Sinopec) jumped 0.95 percent, Hong Kong & China Gas advanced 0.82 percent, Industrial and Commercial Bank of China collected 0.77 percent, Lenovo Group shed 0.59 percent, Li & Fung lost 0.35 percent and CNOOC added 0.12 percent.

The lead from Wall Street is broadly positive as stocks moved higher on Monday, allowing the Dow and the S&P 500 to both hit new record closing highs.

The Dow climbed 144.71 points or 0.7 percent to 21,528.99, while the NASDAQ surged 87.25 points or 1.4 percent to 6,239.01 and the S&P added 20.31 points or 0.8 percent to 2,453.46.

The buying interest on Wall Street was in reaction to political news out of Europe. Brexit negotiations with the EU have begun after Britain bowed to pressure for a formal opening to their long-awaited negotiations.

Also, French President Emmanuel Macron's party won a clear parliamentary majority in Sunday's election, giving him a strong mandate in parliament to pursue his pro-European Union, business-friendly reform plans.

Crude oil futures fell Monday as the dollar strengthened on expectations the Federal Reserve will again raise interest rates in the next few months. WTI light sweet crude oil was down 58 cents at $44.17 a barrel.

Closer to home, Hong Kong will provide May numbers for unemployment and consumer prices later today. In April, the inflation rate was 2.0 percent, while the jobless rate was 3.2 percent.

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This article appears in: Politics , World Markets , US Markets , Oil , Stocks
Referenced Symbols: CEO , HOKCY , IDCBY , LFUGY , LNVGY


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