Hong Kong stock retreat, US confidence downturn, mixed US indices, and GBP/USD consolidation ahead of UK releases. Our technical analysis covers key market developments and trading opportunities.
Hang Seng Index rebounded but remained below 20-day moving average
The recent high-flying Hong Kong benchmark stock indices that rode on the coattails of China’s Artificial Intelligence (AI) theme play have continued their downward drift since Monday, 24 March, after hitting 52-week highs last Wednesday.
Despite an intraday rebound of 0.3% seen on the Hang Seng Index in today’s Asian session at this time of the writing, it remained below its 20-day moving average with a bearish short-term momentum reading. In addition, Alibaba Group Chairman John Tsai warned yesterday of a potential data centre construction where the pace of the buildout may outstrip initial demand for AI services that triggering a negative feedback loop into China's Big Tech stocks.
Also read: AI revolutionises retail trading from Gen AI to AGI
Another leading US economic data has flashed out an impending slowdown in economic growth, the Conference Board’s Consumer Confidence Index for March has fallen to 92.9 from 100.1 in February, its lowest level in four years.
Mixed performances were seen in the US benchmark stock indices, the mega-cap technology-centric Nasdaq 100 squeezed out a gain of 0.5% while the small-caps Russell 2000 underperformed with a loss of 0.7%.
Also read: ROE explained: A beginners guide
The GBP/USD traded sideways below its key short-term resistance of 1.2980 ahead of today’s release of the UK’s inflation print for February and Chancellor Reeves’s Spring Economic Statement address to the UK parliament.
