The S&P 500® Index (SP500) reached yet another intraday high on Tuesday prior to closing in the red, tracking declines in the Dow Jones Industrial Average and Nasdaq Composite. Bearish investors net bought 8.3mil units of put warrant SP500-HR yesterday following the US market rally on Monday.

Meanwhile, the Hong Kong market reopens today after a long weekend. Market making for warrants over the Hang Seng Index, Hang Seng TECH Index and iShares A50 China ETF will resume today as well.

US Stocks Fell From Record High

At the start of the week, investors reacted to the US’ March employment report released on Friday, a public holiday in the US, which showed that non-farm payrolls rose by 916,000 versus the expected 660,000 while unemployment rate fell to 6% versus 6.2% in February. In addition, against an improving economic backdrop, analysts have been raising estimates for companies’ first quarter earnings results as the earnings season is due to commence in a few weeks (Yahoo Finance, 7 Apr). The SP500 surged 1.4% on Monday to close at a record high of 4,077.9. With movements in the overnight market and as the SP500 futures (traded 23 hours a day) started retreating from its closing high, bearish investors net bought 8.3mil units of put warrant SP500-HR yesterday.

Following Monday’s record-setting rally, US stocks traded lower on Tuesday with the SP500 touching yet another intraday high of 4,086.2 prior to closing in the red at 4,073.9 points (-0.1%).

Hong Kong market reopens after 5-day weekend

Meanwhile, the Hong Kong market reopens today after closing for public holidays from Friday 2 April to Tuesday 6 April. Accordingly, market making for warrants over the Hang Seng Index (HSI), Hang Seng TECH Index (HSTECH) and iShares A50 China ETF (A50CHIN) resumes today as well.

According to an article on The Standard (7 Apr), the decline in Asian stocks yesterday may weigh on the Hong Kong market today, as foreign net flows to emerging market equity and debt portfolios slowed in March to their weakest in almost a year due to rising US yields.

The MSCI Asia-Pacific Index fell 0.2% yesterday, while the Shanghai Stock Exchange Composite Index fell 1.43 points to 3,482.97 with China stocks pressured by healthcare and consumer companies as upbeat economic data raised worries of policy tightening. The local benchmark FBM KLCI fell 0.3% to 1,578.9 points yesterday.