With Hong Kong GDP data in, experts can’t wrap their minds where the index will go next. Also, Tesla shares are under pressure again – is there a recovery in sight?

With Hong Kong GDP data in, experts can’t wrap their minds where the index will go next. Also, Tesla shares are under pressure again – is there a recovery in sight?

Falcon 9 launch malfunction – shares reaction?

Yesterday another launch of the Space X rocket Falcon 9 had to take place from the platform in Florida, USA. The privately held American company was to launch Falcon 9 rocket with Bangladeshi satellite onboard. The live broadcast that everyone could see at the official website of the company said that in just 1 minute before the launch the system malfunctioned and the launch was impossible to conduct.

Although neither the rocket nor the cargo took any damage the launch was postponed for today in order for all the systems to be checked properly. Of course, such events can’t help but harm Tesla’s shares. The company’s owner Elon Musk is by now the holder of the larger portion of the Tesla’s share – about 20 percent of them, but other investors are not so eager to put their money to the failing company.

At the end of last year it was announced that Tesla are going to put more electric cars on the production line in order to boost both the output and the profits of the company. But that didn’t happen. Yes, the company had a lot of hype around when the super heavy was launched but even after that its shares didn’t experience a much needed addition in price. Today, after the unsuccessful launch the shares lost 0.6 percent of the price and one share now costs $305.02 which is a goof boost from the $284.45 point shares hit a week ago and definitely a big difference from $252.48 point – the lowest in the last couple of months point was reached in the middle of April.

Seems that a much needed success of the Tesla is yet to come, otherwise it may become too unprofitable to hold the shares which will result in a selloff of the shares and lead to the bankruptcy of the company.

Hong Kong economy is on the rise, but for how long? GDP data are in.


With recent GDP data published by the government of Hong Kong it seems that the economy of the region has grown quite a lot since last year. Numbers, presented to the public indicate a 3.4 percent growth in the first quarter of 2018 from the last time such calculation was performed, which was last year. The dark spot is that that may be just it for the economic potential of the region for now.

With all the problems looming over the area it is not hard to understand why such predictions are made: USA is pressuring China with new tariffs and tight Federal Reserve policy. Possible trade war makes everything look even worse. Senior Asia economist from Pictet Wealth Management Dong Chen said to the reporters: “From a macro perspective the Hong Kong economy is doing pretty well. Last year was extremely strong, of course on the background of a global synchronized expansion. This year we think it will moderate.”.

He also made a forecast for the next year’s numbers. Chen says that it is very possible that we see the number being slightly lower the next quarter – about 3.2 percent growth although touristic boom may lilt all of the predicted number higher. But here economists play an “interest rate” card which has been very low at the city due to the relatively weak currency.

Other concerns lie within the trade tensions. With Hong Kong being one if the main trading ports and points in the region, American policies do not make it easier. One of the experts from Australia & New Zealand Banking Group Ltd says: “We should never look down the risk of a U.S.-China trade war. If the U.S. truly targets China-made gadgets, Hong Kong’s trade will be hit.”

Stocks, currencies and crude overview.

King World News What Is Happening In Gold Bonds And Crude Oil Is Truly Stunning compressor

With weak performance by the European stocks it was a relief for the traders and market spectators to them higher at the last day of the trading week. As they grew, so did Asian shares and after a week of losing it is a welcome improvement. Dollar is steady and oil crude retreated after a spectacular performance this week.

S&P 500 Index grew 0.05 percent.

Stoxx Europe 600 was almost unchanged after the markets closed.

FTSE 100 from the UK fell by less than 0.05 percent.

DAX fell less than 0.1 percent. MSCI Asia Pacific advanced by 0.9 percent.

Dollar rose less than 0.05 percent against six major currencies, just like euro - +0.05 percent - $1.1971.

Pound gained 0.1 percent - $1.3533.

Yen grew 0.05 percent – 109.35 yen per dollar.

WTI oil dropped 0.1 percent - $71.28 per barrel.

gold added less than 0.05 percent - $1.322.14 per ounce.