HANG SENG - Gold tries to test $2000 ahead of FOMC publication - 10/27/2023 (GMT)

The Hang Seng index has been under pressure recently amid a plummeting Nasdaq and the continuation of escalation in the global bond markets. The level of market fear increases, as VIX crosses 20, though it is still far from the concerning levels.

Today, Hong Kong and Japan took the lead in advancing the Asian stock market, with Australian and South Korean stocks also showing positive gains.  Mainland Chinese shares experienced a modest uptick following industrial companies' profit data, indicating growth, albeit slightly slower than the previous period.

According to Bloomberg, China Evergrande Group engaged in discussions this week with creditors who had previously objected to its restructuring proposal. The company is under increasing pressure to demonstrate advancement in its overhaul before a court hearing scheduled for Monday, which could potentially lead to its liquidation. This is a potentially negative factor.

Let’s focus on the Hang Seng index and try to figure out the most probable scenarios for this market.

HK50
HK50 is moving downward, heading to the $16800 level, the intermediate-term support level. The price may retest this level ahead of FOMC interest, after which it may rebound higher.