Hong Kong Exchanges & Clearing Ltd (HKEX) plunges the most by -9.3% since 2015 after a deleted news report that stamp duty on stock trades would be rise for the first time since 1993 to 0.13% to 0.1%.
This increased in HK stock trades stamp duty rumour has also dragged down the intraday performances of HK benchmark indices:
Hang Seng Index $HSI -1.9%(30045)
Hang Seng TECH Index $HSTECH -3.6%(9505)
It has been confirmed HKEX to hike stamp duty on stock trades from 0.13% to 0.10%. HKEX (0388) closed down -8.8% (509), its worst performance since 1993.
Negative feedback loop into Hong Kong benchmark indices as well at today close
Hang Seng Index $HSI -2.99% (29718)
Hang Seng TECH Index $HTEC -5.1% (9360)
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Good morning Asia! A sea of red for US stock market overnight. Even the outperforming cyclical/value stocks were not spared as traders took on a “sell everything” mindset due to a strong up move in long dated US Treasury yields..
Despite Fed Powell “assurance” that tapering of bond buying is likely not happening in the near to mid term.
Scorecard:
SP 500 $SPX -2.45%(3829)
Nasdaq 100 $NDX -3.56%(12828)
Dow Jones $INDU -1.75%(31402)
Russell 2000 $RUT -3.69%(2200)
As per highlighted earlier to watch the 1.38% major resistance on the US 10 year Treasury yield, it broke above 1.38% with a daily close at 1.53%, +15 bps, steepest single day gain since 4 Aug 2020.
Expected positive following through seen in the major US stock indices after its prior day of bullish reversal with cyclical/value plays continue to extend their outperformance that pushed the Dow Jones Industrial Average to fresh ATH (less weightage in tech stocks)
Scorecard:
SP 500 $SPX +1.14%(3925)
Nasdaq 100 $NDX +0.81%(13302)
Dow Jones $INDU +1.35%(31961)
Russell 2000 $RUT +2.38%(2284)
The worse hit $NDX has managed to reverse its initial loss of close to -1.69% when the 10 year US Treasury yield breached above 1.38% major resistance
The 10 year US Treasury yield $TNX printed an intraday high of 1.43% before closing at 1.38% which reinforced the recovery in $NDX & extended the gains for the rest of the US stock indices.
Good morning Asia! Interesting movements were seen in the US session overnight as major US stock indices trimmed earlier losses. The S&P 500 halted its 5 day of losing streak & ended up +0.1% at the close after intraday -1.2%.
The worst hit big tech heavy Nasdaq 100 recorded intraday -3.5% breached below 13190/100 key MT pivotal support (12758 low) before it reversed back up to close at 13194. Medium term uptrend intact as dip buyers came in to support
Scorecard:
SP 500 $SPX +0.13%(3881)
Nasdaq 100 $NDX -0.22%(13194)
Dow Jones $INDU +0.05%(31537)
Russell 2000 $RUT -0.88%(2231)
The rising long dated Treasury yields are the main catalyst for the current softness seen in US tech/growth stocks.