Thursday, 25 June 2009 (Pre-market Post)

Pre-market Summary
Much as expected, Asian markets should perform well today, despite the slight dip with the Dow overnight. Bernanke indicated in his Fed policy statement that they will keep rates at 0%-0.25%, much as what economists had predicted. He also came out to say that they also see the recession in the US economy easing, with financial markets performing much better over the past months. More so, inflationary worries were calmed when he suggested that they don't see that as a problem. Concerns over a possible interest rate hike towards the end of the year will mostly be pushed into 2010.

Warren Buffet also came out yesterday to comment on the general economy. He suggested that the market seems to have been better, but the US economy has not actually started recovering yet, rather the contraction has simply slowed.

HKMA continues to inject cash into its reserve, suggesting that capital continues to flow into the Hong Kong market, which should theoretically keep prices afloat.

Today's Watch List
China Construction Bank (0939.HK), very likely to close above HK$5.90 today, though resistance at HK$6.00 remains strong. They have entered into an agreement with Spanish bank Banco Santander to open up lending financial services to rural parts of China, following suit Citibank and HSBC Plc.

CHALCO (2600.HK), after world demand for Aluminum was raised yesterday, Chalco should also benefit from the news, following its American counterpart ALCAO's price jump of ~2%. This news comes out to contradict what Rio Tinto commented about world demand to fall 12% this year in early June.

Shall the HSI close above 18,000 today? Very likely.