Fundamental Analysis:

While global risk appetite has shown slight improvement, the outlook for China-related equity markets remains under pressure. U.S.-China tensions have intensified, with Washington threatening a fresh round of aggressive tariffs. China has responded with a 50% tariff on U.S. imports, effective April 10. In retaliation, the U.S. raised its tariffs on Chinese goods from 104% to 125%, effective immediately. China has yet to issue a formal response to this latest escalation, keeping markets on edge and fueling broader volatility.

Technical Breakout:  

Technically, the HK50 index is trading lower and hovering near a key support level of 19055.00. The MACD is showing increasing bearish momentum, while the RSI is at 29, suggesting the index may continue to decline if it breaks below this level. A confirmed breakout could lead the index to test the next support target at 16515.00.

Potential Risks: The ongoing trade war remains the primary risk factor that could lead to further volatility

Monitoring: Stay updated on potential trade tensions between US and world to gauge the likelihood movement for several asset classes.

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