FX.co ★ Hong Kong Shares Slide to 2-Week Low

Hong Kong's stock market saw a decline of 273 points or 1.2%, reaching 23,438 during Thursday morning trading. This marks the third consecutive drop, edging the index closer to a fortnight low. This downturn followed a significant slump in U.S. futures after Federal Reserve Chair Jerome Powell adopted a cautious approach concerning inflation, despite the central bank keeping interest rates unchanged for the fourth successive meeting, as anticipated. Additionally, geopolitical tensions weighed on market sentiment, fueled by apprehensions about potential U.S. involvement in the Middle East. The market experienced widespread losses, with notable downturns in consumer, financial, and technology sectors. Although Beijing's commitment to disbursing the remaining consumer trade-in subsidies steadily offered minimal relief, the upcoming decision by the People's Bank of China (PBoC) on the monthly loan prime rate remains a point of interest, especially following May's record-low cuts aimed at invigorating a sluggish economy and mitigating risks associated with U.S. trade frictions. Key companies experiencing significant setbacks include Smoore, which declined by 4.7%, Trip.com by 3.5%, China Hongqiao by 2.8%, and Hansoh Pharma by 2.3%.