Hong Kong Stocks Suffer 4-Day Slide Amidst Ongoing Oil Stock Downturn; Property Developers Rally on Fed Rate Cut Hopes

Hong Kong's stock market drops for the fourth consecutive day as Wharf and SHK surge, banking on a potential reduction in the Federal Reserve's interest rate. Speculations of a rate cut by the Fed have uplifted some Hong Kong stocks, even though oil stocks have decreased; this has led to an increase for property developers. Despite the downturn in oil stocks, the anticipated Federal Reserve rate cut has still managed to lift some Hong Kong stocks, with property

At the end of trading, the Hang Seng Index had dropped by 0.1% to end up at 17,444.30, wiping out an initial increase that reached up to 0.6%. Over the course of the week, this key indicator has fallen by 3%. On Thursday, the Hang Seng Tech Index saw a small rise of 0.1%, a growth mirrored by the Shanghai Composite Index.

In July, the number of new employment opportunities in the US didn't meet the projected estimates and reached its lowest point since 2021, causing a decrease in the return on two-year Treasury notes. Details regarding US payrolls will be released this Friday, providing further insight into how the Federal Reserve may respond to these employment statistics in their upcoming policy discussion.