Story of the day
We believe equity markets can overcome the seasonally volatile 3Q to finish the year on a better note if inflation cools further, the Fed stops hiking rates, and China’s recovery resumes.
We believe equity markets can overcome the seasonally volatile 3Q to finish the year on a better note if inflation cools further, the Fed stops hiking rates, and China’s recovery resumes.
We are watching two investment themes: 1) El Niño is back with warmer and drier weather expected over the rest of the year; and 2) AI is breathing new life to the tech recovery. Beyond these, we remain positive on the Hong Kong market.
El Niño & AI Market
• Warmer and drier weather could lead to Higher crude palm oil (CPO) prices as crop yields may get affected
• Increase in demand for beverages and cooling devices like air conditioners
• Rising need for oil to generate power as hydro and wind power generation decline
Riding the AI wave
Demand of AI-related segments is expected to pick up strongly.
Still positive on Hong Kong
We stay positive on Hong Kong with the market’s attractive valuation and policy efforts to drive demand.