THE Hang Seng Index has tailed the rises and falls in the Dow Jones over the past week showing little impetus of its own. The 9,700 support level was broken and market participants are at a loss to predict its future movement. At the moment, nothing promises to be positive news for a market which now almost despairs about a US interest rate cut ever happening. Worse still, long bond yields in the US look set to pick up after hitting a 20-month low. The week began with a 100-point loss and brokers were pessimistic it would turn into a spiral. China Everbright Securities research director Samuel Lau said: 'People are still very cautious about the Dow and we need more information from the United States. That's why the market was jittery.' By Tuesday the Dow had fallen 39.38 points to 4,755.48 in response to the suggestion of a rate cut by Greenspan. Dharmala Securities research director Ben Kwong said: 'We were dragged down by a fall in Wall Street as short-term sentiment turns cautious. Market optimism for interest rate cuts is also cooling down.' It was a less than comfortable week for Cathay Pacific following news of a rival on the horizon. The airline saw more than $1 billion wiped off its market capitalisation, and lost 40 cents, to $11.60. Parent Swire Pacific was hit hardest on Thursday losing $1.75 or 2.9 per cent to $58.50. James Osborn, sales director at Baring Securities, said: 'For the first time people decided they would take it out on Swire as well.' Resumption of trading by Hanny Magnetics with much fanfare after three weeks of suspension livened up mid-week. However, it suffered losses of 21.7 per cent, and closed at 13.7 cents. The company is at the centre of insider trading allegations and is under the scrutiny of securities regulators. A rebound in Wall Street on good earnings results lifted local trading after three days of losses. Kleinwort Benson head of sales Nial Gooding said: 'There is not a lot going on. We just don't fire people's imagination domestically or internationally.' However, the technical rebound did not hold and doubts about bond yields overwhelmed the local market. Mr Osborn said: 'The market is very quiet at the moment. It is the quietest I have seen for some time. 'The market is a discounting mechanism and everything has already been discounted,' he said. On Friday, the index was weaker and slumped below the short-term support level of 9,700 to reach 9,680.75. Schroder Securities salesman Abbott Lau said: 'The selling on Swire, in particular, has been very strong, but we expect it will gain support before much longer.'