Hong Kong’s Stock Market Is on a Wild Ride

Nov 22, 2022

Lead Stories

Hong Kong’s Stock Market Is on a Wild Ride; Is it a bear market or a bull market? The only certainty is volatility.
Cao Li, Rebecca Feng and Matthew Thomas – The Wall Street Journal
Hong Kong entered a bull market earlier this month—at least according to one common definition. The city’s benchmark Hang Seng Index surged 25% in the first half of November, clearing the 20% hurdle that is traditionally used to define a bull market. The sharp run-up from its trough on Oct. 31—when the index touched its lowest level since April 2009—was fueled by signs that China is starting to shift away from its strict zero-Covid policy that has hamstrung the world’s second-largest economy. Moves by the Chinese government to ease pressure on its limping property sector also gave investors reason for optimism.
/jlne.ws/3tPi5Fc

Stock Market Outlook: 2023 Will See ‘Extreme Volatility’ & Boom-Bust Inflation
Jennifer Sor – Business Insider
Investors should be prepared for “extreme volatility” in 2023, as the US economy steers through 1940s-style boom-bust inflation, according to Morgan Stanley chief investment officer Mike Wilson.
“We don’t think it’s the 70s, we think it’s more of the 40s, where it’s a boom-bust,” the top stock strategist said in an interview with CNBC on Tuesday. He compared the current inflation cycle to the demand-driven inflation that took root in the economy after World War II.
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JPMorgan Asset Management launches active ETFs in Australia
Julienne Raven Lingat – Financial Times
JPMorgan Asset Management has become the latest global asset manager to move in to Australia’s growing exchange traded funds market after listing two actively managed ETFs on the Australian Securities Exchange.
The JPMorgan Global Research Enhanced Index Equity Active ETF and the JPMorgan Equity Premium Income Active ETF are also the first ETFs the US fund house has listed onshore anywhere in the Asia-Pacific region.
/jlne.ws/3hYd7mZ

Exchanges

CME eyes retail growth with new weekly FX options Exchange hopes to capture massive demand from the sector; New contracts will be available from December 5
Joe Parsons – Risk.net
CME Group is set to launch weekly foreign exchange options contracts that expire on Tuesdays and Thursdays, allowing traders to hedge volatility around specific market events. The new contracts – for G5 currencies – will be available on both CME’s electronic central limit order book (Clob) and off screen via bilateral block trades, from December 5. The move expands the exchange’s existing weekly FX options contracts that expire every Monday, Wednesday and Friday, giving traders the flexibility
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Cboe MATCHNow’s Willing To Trade Enhances Investors Ability to Source Block-Sized Liquidity
Cboe
Cboe MATCHNow operates Canada’s largest equity dark pool, accounting for 64.5% of total dark Canadian volume and over 3% of total Canadian volume traded. One of our primary goals is to provide price improvement compared to the protected National Best Bid or Offer (NBBO) for Canadian investors, and MATCHNow’s Conditional Book allows investors to do just that by sourcing block sized liquidity through Conditional Orders, Sponsored Access and Willing To Trade.
/jlne.ws/3UbiL2N

Strategy

The Curse of Calling the Rally
Helene Meisler – TheStreet
They say the technical analyst’s curse is to want one more rally and, more often than not, that one more rally never materializes. Could that be the case this week? Sure.
But rather than focus on that possibility, let’s go back to the discussion of the Volatility Index. It fell on Monday. Yes, despite that, the S&P 500 was red on the day the Volatility Index was down, and not marginally. You would have to squint really hard to see it actually made a lower-low than two weeks ago, but the point is that the VIX came down. And along with the VIX falling, the Daily Sentiment Index (DSI) for the VIX fell. It is now at 21.
/jlne.ws/3ACiIpB

Miscellaneous

Cult of Personality with Terry Duffy of CME Group
On The Tape Podcast
Guy and Danny discuss the FTX collapse (1:00), Walmart earnings (7:30), the yield curve inversion (9:20), energy stocks vs. crude oil (23:30), an update on cannabis (26:35), and Danny’s NFL picks of the week (31:30). The co-hosts interview Terry Duffy, Chairman and CEO of CME Group, and talk about the LPGA event in Naples (35:19), stock market volatility (40:50), Terry’s take on the FTX situation (44:04), risk management (47:45), the importance of mentors (58:24), the CME-Google deal one year later (59:30), interest rates (1:03:01), the politicization of the Federal Reserve (1:06:39), Elon Musk (1:13:24), the spotlight on the commodities market (1:15:15), and the future of CME Group (1:16:45).
/jlne.ws/3EtEXPI

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