As expected the market opened up, about 600, then it gapped up by 1,020 points on short covering. However, the momentumwas not sustainable and we finally closed up 200. Rather disappointing given the good news from the Mainland.
Actually, it is only natural that some investors will sell into rallies. I will be more worried if the market was up 1,020 today on top of yesterday. We finally closed up 133 at 21,729.
Consensus is that the Fed will cut Fed Funds rate soon. I believe that this will be the beginning of a string of cuts, and that eventually the turmoil will quieten down. At that time, the HK market will be driven by internal factors.
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