[Anatomy Overview]

U.S. core CPI rose 0.3% month-over-month, exceeding the market’s expectation of 0.2%. Following the release, traders priced in roughly a 90% probability of a Fed rate hike. Nevertheless, Hong Kong stocks remained relatively steady, dipping to a intraday low before rebounding to close up 0.45%.

Analyzing last Friday’s U.S. stock market rally, some attribute it to the digestion of negative news, while others expect a single rate hike before year-end; very few, however, rule out the possibility of no rate increase at all. In reality, any scenario remains plausible. On the trading…