Declines in Asia: The Hang Seng index falls by about 1.3%

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8:40

Asian stock markets trade mainly with price drops: the Hang Seng index falls by about 1.3%, while the Nikkei index and the Shanghai Stock Exchange with slight increases of about 0.2%. The Kospi index fell by about 1.2%.

The declines in Hong Kong come on the back of the disappointing inflation data published last Saturday, which rose at the lowest rate in four months; This, despite the Chinese government’s attempts to speed up the economy through stimulus packages. Last Friday, Beijing announced a five-year stimulus package worth 1.4 trillion dollars, in order to deal with problems of government debt, but analysts doubt its ability to lead to significant growth.

Inflation rose in October by 0.3% at an annual rate, thus slowing down from the reading of 0.4% carried out in September. However, core inflation, which strips out energy and fresh food prices, rose 0.2% in October, accelerating from September’s reading of 0.1%.

Wall Street closed last weekend with gains, with the three main indexes breaking all-time highs. In the last two trading days of the week, the Dow Jones, S&P 500 and Nasdaq rose by 0.6%, 1.1% and 1.6%, respectively.

Trading in the futures contracts on US stock market indices is conducted with slight price increases.

US debt market

The 10-year bond yields rise this morning by about 3 basis points and stand at a level of 4.34%. The two-year bond yields stand at a level of about 4.25%.

The global forex market

The dollar traded stably against the euro and the pound sterling. Against the Japanese yen, the dollar strengthened by about 0.6% and now stands at about 153.5 yen.

The crypto market

The surge in the crypto market following the election of Donald Trump to the US presidency continues. Bitcoin is at its all-time high and is now trading at over $81,000, with an increase of about 2.8%. On the other hand, Ethereum is down about 1% and its price now stands at about -$3,145.

the commodity market

Oil prices are now trading stable. The price of a barrel of American oil is about $70.3, while the price of a barrel of Brent oil is about $73.9.

Gold is down about 0.5% and its price now stands at about $2,680 per ounce.

Macro

Last Saturday, the consumer price index in China was published. Inflation in the country rose in October at the lowest rate in four months, despite the Chinese government’s stimulus packages. Inflation rose in October by 0.3% at an annual rate, thus slowing down from the reading of 0.4% carried out in September. However, core inflation, which strips out energy and fresh food prices, rose 0.2% in October, accelerating from September’s reading of 0.1%.

Tomorrow (Tuesday) morning, the consumer price index in Germany is expected to be published.