【Zhenzhuo Institutional View】Soft CPI Data Halts U.S. Stock Decline, Stock Connect Funds Favor Tech Stocks

Yesterday, the November US CPI unexpectedly softened, stabilizing US stocks; the S&P 500 rose 0.8%, closing at around 6,778 points and ending a four-day losing streak. The CPI increased 2.7% year-on-year, with the core CPI up 2.6%, while both the overall and core monthly increases were 0.2%, all below market expectations. Due to the government shutdown causing a gap in October comparison data, investors still need to verify the trajectory, but the decline in yields and rising bets on rate cuts (the market increased the probability of a March rate cut) may temporarily ease funding cost pressures and shift the focus from defensive to interest-rate-sensitive sectors.

On Thursday, Southbound Stock Connect saw a net inflow of HKD 1.26 billion, with $XIAOMI-W(01810.HK) recording the highest net inflow at HKD 900 million, followed by Meituan (03690.HK). Meanwhile, $TRACKER FUND(02800.HK) had the largest net outflow at HKD 1.42 billion, followed by China Mobile (00941.HK).

Source: KGI Securities