Market Beats | Hang Seng Rally Breaks; Toronto Housing Prices Fall for 2nd Month; World’s Tallest Skyscraper Resumes Construction; 6% Mortgage Rates May Spark Refinancing Wave; Middle East Conflict May Push Oil Prices Higher

1. Hang Seng Index Rally Comes to a Halt

2. Toronto Home Prices Fall for Second Straight Month

3. World’s Tallest Skyscraper Resumes Construction

4. Japan’s Richest Man Donates $31 Million to UCLA

5. Amazon to Hire 250,000 for Holiday Season

6. 6% Mortgage Rates May Trigger Refi Boom

7. Middle East Conflict May Push Oil Prices Sharply Higher

1. Hang Seng Index Rally Comes to a Halt

On Thursday, the Hang Seng China Enterprises Index dropped as much as 4.9%, ending a 13-day winning streak. It later rebounded in the afternoon and closed down 1.6%.

Due to the Golden Week holiday, China’s A-shares market remained closed. Since its low in September, the Hang Seng Index has climbed over 30%.

Investors believe this rally differs from previous short-lived rebounds, and many global institutions have shifted from a cautious to a more optimistic outlook.

The head of equity trading at Maybank Securities noted that, given the sustained rise in Chinese stocks, it’s normal for investors to cash out before the weekend.

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2. Toronto Home Prices Fall for Second Straight Month

In September, Toronto’s benchmark home price fell 0.5% month-over-month to C$1.079 million (around USD 800,000), mainly due to a 9.8% surge in new listings, which outpaced the 3.3% increase in sales.

Last month, the Bank of Canada cut rates for the third consecutive time, and the market expected lower mortgage rates to stimulate housing demand. However, so far, the influx of supply has kept prices from rising, giving buyers more bargaining power.

While home sales in September rose 8.5% year-over-year, new listings jumped nearly 11% in the same period, leading to an overall 5% drop in prices.

Economists expect Canada’s central bank to continue cutting rates until the end of April next year.

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3. World’s Tallest Skyscraper Resumes Construction

On Wednesday, Saudi developer Kingdom Holding announced the resumption of work on the Jeddah Tower, set to become the world’s tallest skyscraper. The project was stalled for over a decade and, when completed, will stand 1,000 meters tall, surpassing Dubai’s Burj Khalifa (828 meters).

Designed by American architect Adrian Smith, the tower will include a Four Seasons hotel, residences, offices, three high-rise hospitality lounges, and the world’s highest observation deck on the 157th floor.

The developer says construction will be completed in 42 months, and 63 of the planned 157 floors have already been built.

The project had been abandoned for years due to funding issues.

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4. Japan’s Richest Man Donates $31 Million to UCLA

Tadashi Yanai, Japan’s richest man and CEO of Fast Retailing (parent company of Uniqlo and Theory), has donated $31 million to UCLA’s College of Humanities, breaking his previous donation record of $25 million in 2020.

The donation will support the “Japan Global Humanities” program founded a decade ago, with most of the funding allocated to the “Japan Past & Present” platform — a one-stop hub for scholars of Japanese studies worldwide.

At age 75, Yanai has a net worth of $48.3 billion.

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5. Amazon to Hire 250,000 for Holiday Season

Amazon announced it will hire 250,000 seasonal workers for the holiday shopping period, signaling the company’s strong expectations for year-end consumer demand.

Recently, Amazon also raised hourly wages for 800,000 logistics workers by $1.50 to $22.

Experts predict Amazon may hire a total of 520,000 seasonal employees in Q4 — about 8% fewer than last year.

Adobe projects U.S. consumers will spend $240.8 billion in the last two months of this year, up 8.4% year-over-year.

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6. 6% Mortgage Rates May Trigger Refi Boom

Data shows that homeowners who originally borrowed at 7% interest are now able to refinance at around 6%, saving roughly $200 per month in mortgage payments. If rates fall further, many may refinance again to save even more.

Redfin estimates that 4 million homeowners who bought homes with loans in the past 18 months now qualify to refinance and reduce their monthly costs.

Overall, about 75% of U.S. homeowners currently pay mortgage rates below 5%, though few economists expect rates to fall below that threshold again.

Freddie Mac forecasts that total single-family mortgage originations this year could reach $375 billion.

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7. Middle East Conflict May Push Oil Prices Sharply Higher

Today, U.S. President Joe Biden stated that he is considering supporting Israeli retaliation against Iran, leading WTI crude prices to surge by up to 5.5%, reaching $74 per barrel. Brent crude also rose, nearing $77.

The Middle East supplies one-third of the world’s crude oil, and traders are concerned that escalating conflict could threaten energy infrastructure and logistics.

It remains unclear whether Israel will strike Iran’s oil facilities, but the Biden administration is seeking to stabilize oil prices ahead of the election.

Citigroup estimates that a large-scale Israeli counterattack could disrupt up to 1.5 million barrels of oil per day.

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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.