Hang Seng Index soars as US, China sign interim deal
The Hang Seng Index is on track to another strong finish, with US and China reaching a temporary consensus on trade tariffs.
The Hang Seng Index (HSI) has jumped up at least 500 points in early Friday trade, following positive updates on the US-China trade front.
US President Donald Trump on Thursday evening signed an interim agreement that would see the US reduce planned tariffs on some US$350 billion worth of Chinese imports by 50%.
In exchange, China has reportedly promised to purchase US$50 billion worth of agricultural products from the US.
Practise trading indices with an IG demo account now
Hang Seng Index ending week on a high
Market sentiment seemed to reflect the improved relations, as the HSI opened 1.9% higher than the previous closing level of 26,983.18.
This is the index’s biggest intraday rally in two months, as it managed to break through the 27,000 ceiling. It also hit a one-month high of 27,497.20.
Yet again, the last day of the business week is proving to be the index’s strongest day by far. The HSI also finished the week ending 06 December on a high.
Between Monday and Wednesday, the Hang Seng was drifting sideways around the 26,450 mark, before growing anticipation surrounding the US-China deal, as well as the US Federal Reserve’s decision not to raise interest rates, gave it a boost on Thursday.
On the individual stock front, Tencent Holdings Limited achieved its highest intraday level since August. It hit HK$360 per share as at 9.35AM this Friday morning.
Rival Alibaba Group Holding Limited (Hong Kong) also reached its highest share price since the day after its debut, with HK$202.80.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Take a position on indices
Deal on the world’s major stock indices today.
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
