The whole psychology of the market has changed since the U.S. unemployment figures on Friday. All the U.S. economic statistics in May have been weaker than expected so now people think the interest rate rises since last June are really starting to work and the Fed may not even raise rates when it meets on June 28.

The tick up in the unemployment rate largely had to do with the fact that we had construction workers who basically had to file because of the rain and the stormy weather. When we have inclement weather like that, construction workers are not likely to work on the site. The majority that filed came from that industry.

Cheung Kong was up HK$4.75 in London trade on Friday, so Hong Kong investors are catching up.

Even though the interest rate rise had been discounted, a half percentage point rise in local interest rates will mean that earnings and gross domestic product growth will have to be revised down so there is no commanding reason for people to commit themselves to the market in a large way.

The index is revolving around 16,000 and trying to establish further support at that level.

Sentiment on junior high-tech stocks and China high-tech stocks is quite negative for the time being and until we see Nasdaq stabilize we won't see a big change in the market psychology.