Investment 10/8/2023

Hong Kong stocks lacked direction. The HSI opened 124 points lower and fell more than 128 points at most. It once fell as low as 19,056 points. After the release of China's CPI data, the HSI gradually narrowed its decline and rose by as much as 86 points, reaching a peak of 19,270. After falling in the afternoon, the HSI closed at 19,246 points, up 61 points, ending its two-day losing streak. The HSs Tech index closed at 4,373, down less than 1 point. Market turnover was HK$ 85 billion , down nearly 19% on a daily basis.

The HSI fell to a minimum of 19,056 yesterday. The rebound in the late market was mainly due to a technical rebound. Since the HSI fell back to 19,000 points at 20,800 points, it has fallen by more than 1,000 points. The market stabilized at the 19,000 level and regained its 50-DMA (19,199), temporarily holding on to the wave-on-wave trend that started in early July. In the short term, the Hong Kong stock market is expected to bottom out repeatedly at 19,100. If it rebounds, the target will first look at the 250-day bull-bear line (19,294). Successfully surpassing and stabilizing may improve market sentiment. It is expected that the HSI will continue to see-saw between 18,500 and 20,000 points, and it will be difficult to cross the 20,000 mark, and the downward pressure will be relatively high.

Due to the poor import and export data released by China recently, and the consumer price index (CPI) fell 0.3% year-on-year in July, falling into deflation again in the past two and a half years, the market hopes that the central government will launch stimulus policies in the short term. The market is experiencing a situation of "two pull forces". On the one hand, mainland banking stocks are affected by the possibility of a cut in lending rates in the mainland; on the other hand, domestic insurance stocks are plagued by floods in the mainland. 

European stock markets stabilized, the UK, France and Germany stock markets rose 0.8%, 0.72% and 0.49% respectively. 

The market estimates that the headline inflation in the United States announced on Thursday accelerated to 3.3% year-on-year in July, while core inflation slowed slightly to 4.7%. On the eve of the announcement of the latest inflation data, Wall Street investors became more cautious. US stocks fell repeatedly on Wednesday. The Dow opened slightly higher by 9 points and then rose 56 points. , and then stabilized for a while, and the decline reappeared near the market close. The S&P 500 fell by as much as 0.85%, and the technology-heavy Nasdaq dropped 1.34% at one point. 

The U.S. stock market closed, with the Dow narrowing its decline slightly to 191 points to 35,123, its second consecutive day of losses; the S&P 500 fell 31 points, to 4,467; the Nasdaq fell 162 points, to 13,722.