Asia Morning Analytic: 240210: Materialising Concerns...

Morning readers,

As per close up last night, HSI did maintain a relatively bullish sentiment carrying into Europe. However, given weaker business index in Germany and weaker consumer confidence in US, our mainstream bad news seems to be kicking back into the market. On top of such, Greece and sovereign problems remain lingering on the market, whilst Chinese continuing suprising tightening despite a lower January CPI by hiking discount rate surely puts further constraints on the bullish side for the market, with which, we believe, has been shrugged off by the market.

As we have been reiterating, we are mildly bullish on HSI for a break over 20,800 indicates further gains for the short term, however, we remain to believe a cap on such level will be the biggest barrier to the index's advancement.

Looking ahead of today, Dive2Blue has provided a decently commentary over today's outlook. We remain the same bias as per last night, as dollar continued to strength throughout the overnight session, gauging for risk aversion and profit taking after the previous 5 session of up days.

We are looking for a floor on HSI nearing 20,300, and again, a break below 20,000 may point to further downside, gauging for a 1-2% retreat today. GFA again, reiterates caution nearing ahead, though believe reporting season may provide support on the market.

ongy out.