In a persistent downward trend, the Hong Kong stock market has experienced declines over three consecutive sessions, losing nearly 700 points or 2.7 percent in that timeframe. Consequently, the Hang Seng Index is currently positioned just above the 19,700-point mark and is projected to continue its descent on Wednesday.
Globally, markets in Asia are expected to perform weakly ahead of the Federal Open Market Committee's (FOMC) interest rate decision anticipated later today. Both European and U.S. markets have shown a general downturn, setting a precedent for Asian exchanges to open on a similarly cautious note, though potential bargain hunting could emerge as the session progresses.
On Tuesday, the Hang Seng incurred moderate losses, influenced by downturns in financial sectors, real estate, and technology equities. The index fell 95.01 points or 0.48 percent, concluding the day at 19,700.48, with fluctuations observed between 19,620.63 and 19,930.83.
Key performers included Alibaba Group and CITIC, both declining by 1.13 percent; Alibaba Health Info plunged by 2.27 percent; ANTA Sports decreased by 0.80 percent; and China Life Insurance saw a 0.41 percent dip. Meanwhile, CNOOC stood out positively, gaining 1.68 percent. Numerous other contributors such as JD.com, Lenovo, and Meituan reported diminished values, while firms like CSPC Pharmaceutical and Hong Kong & China Gas remained stable.
The influence from Wall Street presents a concerning outlook as significant U.S. averages endured declines throughout Tuesday's trading hours. The Dow dropped 267.58 points or 0.61 percent, closing at 43,449.90. Simultaneously, the NASDAQ fell 64.83 points or 0.32 percent, settling at 20,109.06, and the S&P 500 declined by 23.47 points or 0.39 percent to 6,050.61.
This decline on Wall Street is attributed largely to a retreat within technology sectors, including prior session leaders like networking and semiconductor stocks, compounded by downturns in telecom, financial, housing, and steel stocks.
Investors remain attentively focused on the Federal Reserve's upcoming monetary policy announcement. While a quarter-point rate cut is widely anticipated, market participants are keen to analyze the accompanying statement and updated economic projections, especially forecasts related to interest rates.
In the commodities market, oil prices decreased on Tuesday amid concerns about global demand projections and a potential oversupply scenario next year. West Texas Intermediate crude futures concluded January trading down by $0.63, or 0.9 percent, ending at $70.08 per barrel.
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