Analysts expect a challenging trading week on hawkish signals from US Federal Reserve and concerns about China’s economic slowdown.
“Investors face a potentially challenging trading week after the index broke below its five-month consolidation range and printed its lowest close since November 2022,” China Bank Capital managing director Juan Paolo Colet said.
Colet said investor sentiment turned negative in view of rising US bond yields and growing worries about China’s economic slowdown and risks from property and shadow banking sectors.
He said investors would remain cautious this week ahead of the Fed’s annual economic policy symposium at Jackson Hole, Wyoming later this week.
“All eyes and ears will be on the speech of Fed Chairman Jerome Powell, which investors hope could offer clues on the direction of US monetary policy, particularly whether the narrative is ‘how high will rates go’ or ‘how long will rates remain high’,” Colet said.
The local index could see support in the 6,150 to 6,200 area with resistance in the vicinity of 6,370 to 6,400 this week.