FX.co ★ Hong Kong Stocks Down Slightly

On Tuesday morning, the Hong Kong stock market experienced a downturn, with the index dropping by 59 points, equivalent to a 0.2% decline, settling at 24,008. This decline reversed the gains observed in the previous session as most sectors saw a decrease. The decline in U.S. futures significantly impacted market sentiment, particularly after President Trump’s call for evacuations from Tehran, which heightened concerns about a broader conflict amid ongoing tensions between Israel and Iran, now in their fifth consecutive day. Additionally, investors remained cautious as they awaited the commencement of the Federal Reserve’s critical two-day policy meeting, with a key interest rate decision anticipated on Wednesday. Although the Federal Reserve is widely expected to maintain interest rates for the fourth consecutive time, the escalating geopolitical risks and increasing oil prices have the potential to obscure the likelihood of near-term rate cuts. In China, the economic data for May presented a mixed picture: retail sales surged to a 15-month high, while the jobless rate declined to its lowest in six months; however, industrial output growth experienced a slowdown, reaching a six-month low. Losses were somewhat mitigated by reports that China’s top legislative body will convene for its 16th session, sparking hopes for economic stimulus. Among the notable decliners were Chow Tai Fook, which fell by 5.7%, Mixue Group, down by 4.0%, SMIC, which dropped by 1.1%, and Pop Mart International, which saw a 1.0% decrease.