NOT much doubt about the most important market events for this week - first, the much-awaited interims from HSBC Holdings and, second, the Federal Open Markets Committee meeting on Tuesday, at which analysts are expecting a decision to increase US interest rates.
With HSBC accounting for about 15 per cent of the Hang Seng Index and the territory's bourse joined at the hip to US interest rates, both events have the potential to move the market at their beck and call.
''If the results are good, we could see the market perform well. If they are bad, the market will go to hell,'' said Archie Hart, research director at Crosby Securities.
But it is more likely the market will stay in the doldrums. Interest rate rises have already been largely discounted, and most major players have decided HSBC's bond losses are nowhere near as severe as first thought and have decided to stick with the stock.
Neither HSBC's results nor a US rate rise have the potential to shock the market and so sharp movements should be restricted.
Mark Gallagher, research research manager at Dao Heng Securities, said: ''I think we are reaching a point where US interest rates are about where [Federal Reserve chairman] Alan Greenspan wants them to be. This will be the fifth rise this year and investors may react positively if they think it is going to be the last.'' Those looking for positive news from HSBC took little solace from the interim results of fellow note-issuing bank Standard Chartered. Profits generated by its Hong Kong operation - the fulcrum about which the bank turns - shrank 12 per cent compared to last year to $1.25 billion. It blamed tight interest margins and a fall-off in the property market.