Mixed cues from US as unemployment soars but interest-rate cut foreseen

Whether for good or bad, the Hong Kong share market should see some action this week as fund managers make their year-end trading decisions before holiday quiet sets in.

'This will be the last action week before Christmas. After that not many people do things,' Vickers Ballas institutional sales director Antony Mak said.

The Hang Seng Index rose 4.9 per cent last week to 11,832.18 points and is up 32.43 per cent since September 21.

Wall Street fell on Friday after the unemployment rate for last month came in slightly higher than expected.

On the brighter side, the United States is expected to cut interest rates by 25 basis points tomorrow although some analysts say Hong Kong banks may not follow suit.

High cash levels and the desire for year-end 'window dressing' could see the blue chips break through 12,000 points this week.