US PCE inflation hits a three-year high, dampening expectations for interest rate cuts; Stock Connect (for Hong Kong) saw a net outflow of 8.874 billion yuan on Thursday

Market Commentary

US May PCE price index rose 4.1% year-on-year, core PCE rose 3.4% year-on-year, hitting a three-year high. The May Personal Consumption Expenditures (PCE) price index increased 4.1% year-on-year, the highest level since April 2023. Excluding food and energy, core PCE rose 3.4% year-on-year, the highest level since October 2023. Inflation-adjusted real consumer spending increased 0.3% month-on-month, indicating that US consumers maintained strong spending willingness despite high prices.

Southbound Stock Connect recorded a net outflow of HKD 8.874 billion on Thursday. Among them, Kingboard Holdings Limited (00148.HK) saw the largest inflow, reaching HKD 2.831 billion; followed by Semiconductor Manufacturing International Corporation (00981.HK) with a net inflow of HKD 2.637 billion. Tracker Fund of Hong Kong (02800.HK)$TRACKER FUND(02800.HK)  recorded the largest net outflow, at HKD 4.379 billion; followed by Alibaba W (09988.HK)$BABA-W(09988.HK) , with a net outflow of HKD 2.252 billion.

Source: KGI Securities