Stock Talk | Market Open: Greece, Spain worries may press Hong Kong stocks lower
Hong Kong stocks may open lower as worries over Spain and Greece escalate, with yields on 10-year Spanish government bonds rising to the highest level in almost three weeks amid worsening problems in Spain and Greece.
Hong Kong stocks may open lower as worries over Spain and Greece escalate, with yields on 10-year Spanish government bonds rising to the highest level in almost three weeks amid worsening problems in Spain and Greece.
The debt-plagued Spanish government on Thursday is due to adopt a 2013 austerity budget that could be a precursor to a full-blown bailout. Meanwhile, sales of new homes in the US fell in August even though economists had expected an increase. Sales fell 0.3 per cent to an annualised total of 373,000 following a revised 374,000 rate in July, lagging estimates.
Overnight, the Standard & Poor's 500-stock index closed down 8.27 points, or 0.57 per cent, to close at 1,433.32. The Nasdaq Composite lost 24.03 points, or 0.77 per cent, to 3,093.70. In London, the FTSE-100 Index gained 91.62 points, or 1.56 per cent, to end at 5,768.09.
Hot Stocks of the day:
Commodities stocks
Crude for November delivery fell US$1.39, or 1.5 per cent, to end at US$89.98 a barrel on the New York Mercantile Exchange, the lowest settlement in two weeks. US gold futures for December delivery were down US$12.80, or 0.7 per cent, to close at US$1,753.60 on Wednesday.
China Securities Journal said China is considering offering fiscal and tax benefits to encourage exploration of shale gas, an unconventional resource that PetroChina (0857.HK), Sinopec (0386.HK) and other private firms such as Honghua Group (0196.HK) are keen to develop.
Local retailers such as Sasa International (0178.HK) and Chow Tai Fook (1929.HK) may be boosted by speculation that sales will be boosted during China's golden week, a seven-day national holiday in the first week of October which often leads to a surge in retail spending by mainland tourists in Hong Kong as well.
Eagle Nice (International) Holdings (2368.HK)
The sportswear maker said its chairman was arrested on March 22 by the Independent Commission Against Corruption over bribery allegations. Both chairman Chung Yuk-sing and his secretary were arrested by the ICAC.
