Markets are concerned about the outlook for the US economy, pointing downwards today (9 days) and breaching the 250-day average (circa 17,257 pips). The US announced on Friday (6th) the addition of non-farm jobs in August was 0.142 million less than expected, the unemployment rate fell to 4.2%, the US stock index pointed to a drop of 1% and 2.6% on Friday. At the time of writing, the US 2-year bond yield stood at 3.071pc, the US 10-year bond yield stood at 3.761pc, and the US dollar rose to 1060pc. At 1.58 level, Dow futures last rose 167 points, or 0.4%, and futures updated 0.7%. China announced August CPI up 0.6% YoY (Market Expected 0.7%), August PPI down 1.8% YoY (Market Expected 1.5%), and the Stock Exchange Composite Index fell 29 points or 1.1% to 2,736 points on the day, marking a 0.83% drop, and Shanghai's two markets traded above RMB 518.6 billion.
Hang Seng extended its losses after a low of 182 points, falling 376 points to 17,067 at midday, down 247 points, or 1.4%, on the whole day, down 17,196 points, for five consecutive days; the CPI fell 102 points, or 1.7%, to close at 6,002 points; and the Hang Seng Technology Index fell 51 points, or 1.5%, to close at 3,436. The quarterly revision of the Hang Seng Index took effect today, with the total trading volume of the major market increasing to $133.665 billion.
Yingfu Fund (02800.HK) fell 1.4 percent to close at $17.84 on the day, trading at $10.5 billion. After the IPO market “changed horses”, the included Polar Rabbit Express -W (01519.HK) fell 7.4%, the New Oriental -S (09901.HK) slid 1.6%; the delisted Kyoto Logistics (02618.HK) was down 0.2%, and the Shuangyu -W (00020.HK) was down 3.5%. TENCENT (00700.HK) FELL 0.6 PERCENT, WHILE ALI-W (09988.HK) FELL NEARLY 1.9 PERCENT.
【Heng refers to five consecutive drops “three barrels of oil” under pressure】
CHINA'S OIL STOCKS WERE UNDER PRESSURE, WITH CHINA OIL (00883.HK) DOWN 3.8 PERCENT AT $19.08, CHINESE PETROLEUM (00857.HK) AND CHINESE PETROLEUM (00386.HK) BOTH DOWN 6.2 PERCENT AND NEARLY 5.6 PERCENT, AND CHINA OIL & CO (02883.HK) DOWN 5.9 PERCENT. China's crude oil imports and processing volumes have continued to decline year-on-year since the second quarter of this year, but international oil prices remain strong in the second quarter, led by the “strong expectations” of an overseas manufacturing recovery and the Middle East risks, the market is bracing for a slowdown in Chinese crude processing and the need for finished oil Attention seeking for the weak is also limited. BRENT OIL PLUNGES TO $70 TO $75 PER BARREL AS U.S. UNEMPLOYMENT RISES IN JULY AND TRIGGERS SUMMONS RULE, EUROPEAN AND U.S. MANUFACTURING PMI FALLS AGAIN BELOW THE LINE FOR THE SECOND HALF OF THE YEAR, PROMPTING MARKETS TO REEXAMINE THE REALITY OF GLOBAL OIL DEMAND The “weak reality” of crude oil processing and consumption in China is becoming more prominent.
Due to the underperformance of industrial oil in the Mainland, the Bank determined that there is room for annual growth in domestic oil demand in 2024 or there is a downside risk of 25 to 0.3 million barrels per day. In addition, the Bank initially observed that changes in domestic crude oil inventories since the beginning of the year or continue at their current pace, with marginal or relatively limited effects on the demand side.
【Falling Thousand Three Square Biobulbs】
Hong Kong stocks weakened today. Mainboard shares rose by 12-31 (21-18 on the previous day), 1,331 shares down (down 3.1%), Hang Index shares rose by 9 shares today, 71 shares fell and 11-87 (543-billion on the previous day); the stock market closed today at $21,527 accounting for 18.198 percent of the outstanding shares traded at $118.289 billion (16.3% on the previous day).
Kangfang Biologics (09926.HK) rallied 15.8% on the back of the market today to close at $55.8 billion on sales of $2.06 billion. China Gold release report indicates that Compaq Biologics announced at WCLC on September 8 at WCLC anti-ivocycline (AK112) contrast Keytruda for 1L treatment of PD-L positive NSCLC Phase III clinical data, ITT group MPFs 11.14m vs 5.82m, ITT group HR of 0.51, and 1-49% in PD-L1 TPS, scaly and non-scaly subgroups Moderate HR performance is stable, and AK112 is superior to Keytruda monotherapy. SUMMIT also announced the launch of a Phase III clinical of AK112 vs Keytruda to treat 1L PD-L1 highly expressed in 2025. The bank believes the results further strengthen the potential of AK112 as an IO cornerstone product, including downstream and other drug combinations.
China kept its profit forecast unchanged for 2024 and 2025. Maintaining the “Run to Win Industry” rating, given the bright reading of this data, raised its target price by 5.7% to HK$70 based on the cash flow discount rate model.