US tech rally fuels hopes for HSI high

Business | Jul 17, 2017
US stocks continued to renew historical highs last week as the technology sector seemed to have finished its correction cycle to lead rallies again.

US rate hike expectations were easier after softer-than-expected retail sales and consumer sentiment. Core inflation rose 1.9 percent in May, affirming dovish testimony by Federal Reserve chief Janet Yellen.

Last week, the Dow Jones Index rose 1 percent as the Nasdaq soared 2.6 percent. The Hang Seng Index rose more than 1,000 points to a two-year high of 26,389. Most stock commentators are now taking 28,000 as their HSI target for this year.

Quarterly earnings kicked off with major banks JPMorgan Chase, Citigroup and Wells Fargo reporting better than expected earnings.

JPMorgan said loans and deposits continued to grow strongly. Citigroup saw continued momentum in loan and revenue growth.Wells Fargo said net interest income increased.

This week will see more US earnings. China's retail sales, industrial production, property prices and Q2 GDP will also draw attention.

Dr Check and/or The Standard bear no responsibility for any decision made based on this column.

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June 2018