On this Week’s Market Summary:

💡1. Global stocks, government bonds and oil prices slid on Monday as investors worried about the effect of rising interest rates and inflation in Europe and the US, and corona virus lockdowns in China. Wall Street’s benchmark S&P 500 fell 1.7 percent, led lower by technology and energy stocks. The tech-heavy Nasdaq Composite shed 2.2 per cent. The US declines followed losses across most of Asia and Europe earlier in the day. The Europe-wide Stoxx 600 index lost 0.6 per cent. In Asia on Tuesday, the Hang Seng index edged up 0.4 per cent in Hong Kong, while Japan’s Topix shed 1.4 per cent. Continued Covid lockdowns in China, along with the coordinated US and IEA stock releases, are fuelling the capitulation in oil markets,” said TD Securities analyst.

💡2. Chinese stocks can still fall from current levels as Covid-19 lockdowns in Shanghai and several other provinces raise the spectre of “man-made recession” in the world’s second-largest economy. Investors should keep a “comfortable level of cash” to prepare for a possible rebound as policymakers in Beijing are likely to dig into their stimulus toolbox. Existing holders should resist cutting their positions, strategist says. The Shanghai Composite Index has slipped 12 per cent this year, the worst among market benchmarks in Asia-Pacific, while the CSI 300 Index hit a 22-month low on March 15. In Hong Kong, the Hang Seng China Enterprise Index has weakened 11 per cent this year, on top of a 24 per cent sell-off in 2021.

💡3. Capital outflows from China are expected to continue in coming weeks after an exodus of foreign funds from Chinese sovereign bonds in March, experts said, as the country’s yield advantage over US Treasuries disappeared for the first time since 2010. On Monday, 10-year US yields climbed to 2.78 per cent, supporting the US dollar and surpassing the 2.75 per cent yield for China’s benchmark 10-year government bond. Analyst warns that ongoing capital outflows couples with growing depreciation pressure on the yuan may be destabilizing China’s financial markets.

 💡4. Meanwhile in Hong Kong, Investors feeling downbeat about the local stock market’s wavering performance this year may look up to stock buy-back programmes for a boost. They may foreshadow a run-up based on past precedents. Shares of Hang Seng Index members gained 19 per cent on average one year after buy backs, according to Haitong Securities, based on five waves of such stock repurchases since 2008. The unprecedented buy-backs this time appear to have the seal of approval from Beijing officials who, alarmed by a plunge in prices last month. Buy-backs are typically deemed as a market-support mechanism because of extreme undervaluation, or a lack of investment options to deploy excess cash.

You can find the latest ""Weekly Market Summary"" 📔 here: https://drive.google.com/file/d/17j8f4-d2Snc2j9iKq4psr6hPEOkO7I9U/view?usp=sharing  

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One of the must-ask interview questions for banking and finance is: “Have you read any news recently?”, with the follow-up questions: “How would you link this news to the market and what investment suggestions would you give to your clients based on this news?” 

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Showing your market sense and ability to provide feasible investment ideas would help to differentiate you from other candidates. Therefore, apart from the weekly news update / investment insights, we have also generated this Weekly Market Summary for you to have a quick understanding of the market development and tips to answer some hot discussion topics. Take a look of the summary and WhatsApp us in the group if you have questions.