Global stocks are mixed today after having a relatively strong 2020 amid the global pandemic. In Hong Kong, the Hang Seng index us up by more than 0.80% while in the United States, futures tied to the Dow Jones and S&P 500 are barely moved. In Europe, FTSE 100 and DAX index futures are in the green.
What happened: The Hang Seng index is rising as investors price-in more listings this year as US exchanges start to delist some of the biggest Chinese companies. This is after Donald Trump signed an executive order that prohibited exchanges from listing companies with Chinese military ties.
Meanwhile, other indexes are mixed as investors brace for higher volume as investors start returning from holidays. The so-called January-effect could see most indices rise as investors buy back shares after the previous weeks’ tax-loss harvesting.
What next: The biggest focus among investors this week will be the upcoming Georgia run-off election. If Democrats take control of the Senate, it will send a signal of more immediate stimulus in the United States. However, it will also mean higher taxes. However, if Republicans win at least one seat, it will be a signal of more gridlock, which is viewed positively by investors.
Hang Seng technical outlook
The Hang Seng index rose to an intraday high of h$27,490, which was the highest level since February 2020. On the daily chart, the price is above the 50-day and 200-day exponential moving averages and the important resistance level at h$27,025. It is also above the rising pink trendline. Therefore, the index will possibly continue rising, with the next target being at h$27,500.
Hang Seng technical chart