Investment 18/8/2023

Concerned about the spread of the domestic housing crisis to the financial sector, coupled with the weakening of the RMB, the Hong Kong stock market HSI opened 306 points lower on Thursday, and fell as much as 428 points in the early session, reaching an over 8-month low of 17,900 points. , once regained the lost ground; closed at 18,308 points at noon, down 21 points, and finally closed at 18,326 points, down 2 points, with a daily fluctuation of nearly 500 points. The HS Tech index closed at 4,158 points, up 32 points. Market turnover was HK$112.9 billion .

Although the HSI may test the level of 17,500 points today, It fell from a high of 20,361 points at the end of July to a low of 17,900 points yesterday morning, a total of 2,461 points in less than 3 weeks. The big white candlestick at 500 points means that the market will cover the gap in the decline, suggesting a short-term bottom, and it may test the resistance from 18,800 to 10-DMA (18,984).

Last night, the US Federal Reserve released the minutes of its July interest rate meeting, which showed that most officials believed that they needed to continue to raise interest rates in order to curb inflation. Unavoidable weakness will have a certain impact on Hong Kong stocks. The indicators of the economic data announced earlier in the Mainland were all worse than expected. It can be seen that the stimulus measures that have been introduced have not greatly helped to boost the market sentiment.

European stock markets fell across the board, with British, French and German stock markets closing down by 0.63%, 0.94% and 0.71% respectively. 

The U.S. Federal Reserve’s interest rate hike may not be over yet, and the poor response to Japan’s bond auction has stimulated a sharp rise in global bond yields. U.S. stocks rose first and then weakened repeatedly on Thursday. After the Dow opened higher by 63 points, its early gains expanded to 122 points , as high as 34,888 points, but then turned around and fell 325 points to 34,440 points at the end of the period; the S&P index once fell by 0.9%, and the Nasdaq, which is dominated by technology stocks, fell by as much as 1.27%. 

The U.S. stock market closed :  The Dow fell 290 points to 34,474, the third consecutive day of losses; the S&P 500 fell 33 points to 4,370; the Nasdaq dropped 157 points to 13,316.