FX.co ★ Hang Seng Turns Early Gains to Finish Lower

On Thursday, the Hang Seng Index declined by 63 points, or 0.2%, closing at 26,283, thereby reversing its earlier gains and marking a second consecutive session of losses. Investor sentiment turned cautious as doubts emerged about the sustainability of a potential U.S.-China trade agreement following a meeting between President Trump and Xi Jinping. Previous negotiations, despite initial promise, have often failed to materialize into lasting agreements. President Trump announced an impending reduction of U.S. tariffs on China's fentanyl to 10%, and Beijing agreed to suspend its export restrictions on rare earth elements for a year. However, traders remained skeptical about the deal's long-term viability. Additionally, there was heightened caution as market participants awaited China's October PMI data and Hong Kong's Q3 GDP report. U.S. futures showed mixed signals following the Federal Reserve's second interest rate cut of the year, which left future policy direction in question. The majority of sectors ended the trading session in negative territory, with property and technology stocks leading the decline. Notable downturns included Techtronic Industries (-5.0%), Sunny Optical Technology (-4.8%), Prada SpA (-4.3%), Trip.com (-3.4%), and Henderson Land Development (-2.6%).