US stocks tumble after Trump proposed tariffs on $50 billion worth of Chinese exports to the United States. While fear of a trade war weighed on sentiment, there are several bad news from US technology further weighed down market, including the Facebook and Cambridge Analytica data scandal, Uber’s fatal accident, Nvidia suspends self-driving car tests, and short seller’s bet against Twitter on data concerns. Besides, the waves of Russian diplomat expulsion are strengthening political tension between Russia and Western countries and triggered a bout of investor risk aversion. In HK, most of the FY17 financial results announced this month so far are quite in line with or even beat consensus earnings estimates, but we saw some profit-taking actions after the result announcements. We suggest investors to reduce position in blue chips such as Chinese banks and Chinese insurers for better risk management amid heightening market risks.

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