- Check how the Hang Seng index responds to the decisions of blocking Trump's tariffs, and what is the technical outlook for the Index
The sentiment improved by Thursday morning due to the US court’s decision to block Trump’s tariffs. China and Hong Kong stocks advanced this morning. Key Chinese stock indexes capped their five-day losses and rebounded, while the US dollar rallied and the gold prices sank after the court decision, due to a change in the risk appetite.
On Wednesday, the US Court announced that Trump’s tariffs were blocked, and President Donald Trump overstepped his authority by imposing comprehensive customs duties on imports from US trading partners.
The benchmark Hang Seng Index in Hong Kong was up 0.65%, at 23,408.36 points. while the Hang Seng China Enterprises Index rose 0.68% to 8,501.15 points.
Technical Outlook for The Hang Seng Index
From the technical perspective, the bullish outlook is recommended; the index is currently trading above the key support level of 23,222, which supports the price to move towards the resistance level at 23,894, and a clear breakout through this level will support the index to reach the second resistance level at 23,912.
On the flip side, if the Hang Seng index fails to make a daily close above 23,600, this could put the index under pressure to go down again towards the support level 23,222 and then 22,532, which is relatively not recommended due to the fundamental factors such as the blocked US tariffs.
The US and China reactions:
The US has ordered software companies that are working on designing semiconductors to stop selling to China without getting an export license.
On Wednesday, the US Secretary of State, Marco Rubio, announced that the United States will start revoking visas of Chinese students, including those who are with connections to the chinese communist party or studying in critical fields.
What is the Hang Seng Index?
The Hang Seng index is the benchmark for blue-chip stocks traded on the Hong Kong stock exchange. The index is used as a benchmark for Hong Kong Investors, because it’s a widely quoted indicator of the Hong Kong economy.
The Index tracks the performance of the largest and most liquid companies traded on the Hong Kong Stock Exchange.