Market Insight | HK Based Banks collectively decline, STANCHART drops more than 4%, market concerns about interest rate cuts leading to narrowing net interest margins
HK Based Banks collectively fell, as of the time of publication, STANCHART dropped by 4.14% to HKD 72.9; HSBC HOLDINGS fell by 3.44% to HKD 65.9; Hang Seng Bank fell by 2% to HKD 90.5; and Bank of China Hong Kong fell by 1.56% to HKD 22.15. On the news front, on Thursday, the latest data released by the U.S. Department of Labor showed that initial jobless claims surged to 249,000, far exceeding the expected 236,000, reaching the highest level in 12 months. In addition, the Bank of England announced its first rate cut in four years on August 1, 2024, lowering the interest rate by 25 basis points to 5.00%. The interest rate futures market has increased bets on nearly 3 rate cuts by the Federal Reserve this year. The market is concerned that rate cuts will narrow banks' net interest margin income
According to the Vantage Finance app, Hong Kong bank stocks collectively fell. As of the time of publication, Standard Chartered (02888) fell by 4.14% to HKD 72.9, HSBC Holdings (00005) fell by 3.44% to HKD 65.9, Hang Seng Bank (00011) fell by 2% to HKD 90.5, and Bank of China Hong Kong (02388) fell by 1.56% to HKD 22.15.
On the news front, on Thursday, the latest data released by the US Department of Labor showed that initial jobless claims surged to 249,000, far exceeding the expected 236,000 and reaching the highest level in 12 months. In addition, the Bank of England announced its first rate cut in four years on August 1, 2024, lowering the interest rate by 25 basis points to 5.00%. The interest rate futures market has increased bets on nearly three rate cuts by the Federal Reserve this year. The market is concerned that rate cuts will narrow banks' net interest margin income