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Bloomberg, (07/10)
-- Hong Kong stocks fell as the political impasse over the U.S. debt
limit and government shutdown weighed on investor sentiment. Energy and
materials companies led declines.
The
Hang Seng Index dropped 0.8 percent to 22,967.20 as of 9:34 a.m. in
Hong Kong. The Hang Seng China Enterprises Index, also known as the
H-share index, declined 1 percent. Mainland markets are shut until
tomorrow. U.S. House of Representatives Speaker John Boehner said
lawmakers won’t raise the debt ceiling without packaging it with other
provisions.
Futures
on the Standard & Poor’s 500 Index fell 0.5 percent today. The
gauge posted its second weekly decline last week as the first partial
government shutdown in 17 years began. The budget impasse has raised
concern that lawmakers will be unable to agree on increasing the $16.7
trillion debt limit. The Treasury Department has said measures to avoid
exceeding the cap will be exhausted by Oct. 17.
Data
from payrolls to retail sales will be delayed as long as the shutdown
continues, making it harder for the Federal Reserve to assess the
economy as it considers when to start paring unprecedented monetary
stimulus. Fed San Francisco President John Williams estimated a two-week
government halt would shave 0.25 percentage point off fourth-quarter
economic growth.
The
Hang Seng Index gained 2.1 percent this year through Oct. 4 on
better-than-expected Chinese data and after the Federal Reserve
unexpectedly refrained from cutting stimulus. Hong Kong’s benchmark
equity gauge traded at 11.1 times estimated earnings as of Oct. 4,
compared with 15.2 for the S&P 500.
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Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 9:05 AM
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