Equity World – In early trade Hong Kong on Thursday (15/12), the Hang Seng index opened weak, as is observed to drop sharply -295,05 points or -1,31 percent in 22161.57. Pelemehan Hong Kong eroded by the decision of the U.S. Fed raising interest rates.

The U.S. Federal Reserve finally approved the first rate increase in a year on Thursday morning (15/12) and projecting three increase again next year.

The Federal Open Market Committee (FOMC) raised the target range from the range of 0.25-0.5 percent to the range of 0.5-0.75 percent. The level of funds overnight currently sitting at 0.41 percent.

In a press conference after the announcement of the Fed, chair Janet Yellen said the plan of U.S. President-elect Donald Trump to boost the economy with government spending boosted expectations the central bank for three and a rise in interest rates next year.

Hong Kong Monetary Authority raised the level of the basic interest rates for the first time in a year, following the US Federal Reserve to end nearly a decade of interest rates unchanged.

Equity World Hong Kong raised the base interest rate by 25 basis points to 1 percent, matching a move by the US Fed as a further rise in 2017.

In particular the rise in interest rates suppress property developers in the area, where property shares were among the worst performers in Hong Kong, with an average loss of 2.3 percent. The Cheung Kong Property down 2,23 percent to HK $ 50.35, Henderson Land fell 1.79 percent to HK $ 41,15, and the Sun Hung Kai Properties slumped 2.16 percent, stock Whart Holdings sinking of 3.76 percent at HK $ 52,45, the second-biggest loser among all the blue chips.

Almost all sectors were in the red, with heavyweights Tencent and HSBC down each of 0.43 percent and 0.85 percent.

Meanwhile, the movement of Hang Seng index futures this morning spotted slumped -327,00 points or -1,46 percent on 22,160.00, up from the previous trading closing at 22,487.00.

Equity World We prediction that the movement of the Hang Seng index will further move the negative depressed U.S. interest rates, and Hong Kong. Technically, the Hang Seng Index will move in the range of Support 21,679-21,167, and the range of Resistance 22,644-23,134.