China property prices to lead markets

The last day of the trading week will be capped by one of the most keenly watched gauges of the Chinese economy.

China flag
Source: Bloomberg

The housing price index is scheduled to be released at 930am (SGT), where investors will be watching out to see if there are any further signs of the sector stabilising.

This is a key indicator for the  economy, as rising prices usually encourages new construction, and therefore, growth for the country. It also accounts for many other sectors.

We’ve seen the pace of price growth slowing down from 9.9% at the start of the year, to the latest reading of 0.5% for August. Those looking for a positive boost to markets will be hoping the September reading will hover closer to the August figure, or at least not fall into negative territory.

It has been a rather choppy week which started with a bit of a selloff as concerns over a global growth slowdown and Ebola fears prompted profit-taking. We’re starting to see some confidence returning, as reflected by a pullback in the Volatility Index last night of 1.34% to 16.53 points. The Index has been drifting lower after hitting a two-year high of 26.25 points last week.

Ahead of the Hong Kong open

Will we get any more developments that might prompt jitters to return?

A positive reading from China’s housing price index will go some way to allaying those worries. On the flipside, any signs of a property slump exacerbating will likely weigh on sentiment. Trades to watch out for include prices of industrial metals such as copper, AUD/USD, China A50, Hong Kong HS50 and mining stocks.

We are calling for the Hang Seng, or Hong Kong HS50, to open 0.13% lower at 23,328 points.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.