Investment 5/6/2023

Following the House of Representatives, the U.S. Senate also passed a bill to extend the limit on creditor's rights for 2 years to January 1, 2025. The Hong Kong stock market opened 349 points higher and continued its upward trend, and once revisited the 19,000 mark in the afternoon. The Hang Seng Index rose by as much as 808 points, reaching a peak of 19,024, and rose 733 points or 4.02% throughout the day to close at 18,949. The Technology Index rose 193 points or 5.32% to close at 3,824. In addition, the composition of the Hang Seng Index changed horses that day, and the market turnover increased by 16% compared with the previous trading day, reaching HK$149.1 billion. 

Last week, the Hang Seng Index gained 203 points or 1.08%, ending a three-week losing streak; the HS Tech index rose 133 points or 3.6%, ending an eight-week losing streak. 

The U.S. stock market is doing well, the RMB  is strengthening, and the market expects that the central government will increase its measures to stimulate the property market to fight against the economic downturn. Hong Kong stocks were affected by the wind last Friday. The falling gap (18,930 to 19,046) is expected to be fully covered today, and it will try 19,400, but the resistance is not light. Downward Hang Seng Index has support at 18,000. Hong Kong stocks have been slumping since the beginning of this year, and valuations have fallen to a stable level. However, investors are still concerned about the local economic situation in the second half of the year, the trend of the RMB and the US dollar, and the market may not rise too much. 

A "currency exchange agreement" between the People's Bank of China and many countries. However, Argentina and many other countries suspected that they borrowed RMB at a low interest rate far beyond their actual needs through currency swap agreements, and then frantically exchanged RMB for higher-interest US dollars to earn interest differences or facilitate purchases with US dollars. Commodities are like "suits" for profit. This means that China's "currency swap mechanism", which was originally regarded as helping the RMB to internationalize, is now being questioned as being used by foreign countries as a "suit" for profit and impact on the RMB. This means that the RMB has continued to experience tide pressure, which is also believed to be one of the reasons for the recent decline in the RMB exchange rate. 

European stock markets reported positive results. British, French and German stocks rose 1.56%, 1.87% and 1.25% respectively. 

The U.S. non-agricultural employment increased by 339,000 in May, the largest increase this year, and the market expected an increase of 190,000; the loss rate was 3.7%, which was expected to be 3.5%. Employment data was strong, but hourly earnings growth lagged, and no rate hike is expected in June. Coupled with the resolution of the debt ceiling issue and doubts about the recession of the textile economy, US stocks posted a positive performance on Friday. The Dow opened 126 points higher and then moved upwards. At the end of the period, it rose sharply by 743 points, reaching a high of 33,805; the S&P index once rose 1.65%, and the Nasdaq rose 1.18%. 

U.S. stocks closed: the Dow rose 701 points to 33,762, making a good performance for the second consecutive trading day; the S&P index rose 61 points to 4,282; the Nasdaq rose 139 points to 13,240. 

Over the week, the Dow rose 2%, the S&P rose 1.8%, and the Nasdaq rose 2%, marking the sixth consecutive week of gains and the longest winning streak since 2020.