Hong Kong Market Wrap/Europe Morning View 27 Sept 201027 September, 2010, 16:34. Posted by Zarathustra
Tags: Hong Kong, Markets
HSI: +1.00%, HSCEI: +0.80%, SHSE: +1.41%, NIKKEI: +1.39%
Asia market closed higher, as expected. Big gainers in the HSI includes Tecent (700.HK, +5.04%), Sino Land (83.HK, +4.80%), China Resources (291.HK, +4.24%), and Foxconn (2038.HK, +3.95%). Sun Hung Kai Properties was +2.92%, breaking 52-week high.
Although property developers stocks do well, Cheung Kong is launching their new apartments project at lower than market prices. Why?
A good read:
Chinese Property Bust Is Morphing Into a Slow LeakSource: Bloomberg
In April, I told readers I would let them know when China’s property bubble was about to burst. The market has now peaked. It will trend down gradually for the rest of the year. When expectations of a yuan revaluation reverse and capital outflows ensue, probably in 2012, the market will deflate faster.
Europe early trading is slightly higher, and US futures is higher now. Though the new data might not look very good. New data from Hometrack suggests that UK home prices decline in September by the most in 18 months. On the other side of the English Channel, Euro falls on concern over European banks. Your author has previously suggested that European banks were over-leveraged and the deleveraging process did not start a year ago. Now we know Deutsche Bank need to raise capital. Who know which banks need more to deleverage themselves and to prepare the implementation of Basel III?
Unilever pays $3.7bn for Alberto Culver
Unilever is to buy Alberto Culver, the US-based consumer goods company, for $3.7bn (£2.3bn) in a deal that will bring brands such as TRESemmé and VO5 into the Anglo-Dutch conglomerate’s stable of haircare and skincare products. Source: Financial Times
Germany backs tough EU deficit rules
The German finance minister has thrown his weight behind a European Union proposal for tough new rules and fines against member countries that fail to get their fiscal houses in order, setting up a showdown on Monday at a high-level meeting of his counterparts in Brussels. Source: Financial Times
Milibands risk split over deficit
Ed Miliband has offered his brother, David, the post of shadow chancellor, in a move which could set up a bruising early dispute at the top of the party over Labour’s approach to tackling the deficit. Source: Financial Times
Belgium’s Bond Yields Increase More Than Ireland’s in Political Paralysis
Belgium’s borrowing costs relative to those of Germany are rising at the fastest rate in the euro area as a leadership vacuum undermines efforts to cut the region’s third-biggest debt burden. Source: Bloomberg