Investment 7/8/2023

The mainland announced a "combined punch" policy to support the economy. Hong Kong stocks soared 436 points in the early session. The HSI peaked at 19,857 and then retreated. It closed at 19,539, up 118 points, ending the three-day decline. The technology index closed at 4,497, up 90 points. The full-day turnover of the Main Board was HK$114.4 billion. 

In the first week of August, the Hong Kong stock market first rose and then fell. The HSI fell 377 points for the whole week, or 1.89%, while the technology index rose 30 points, or 0.67%. 

The HSI stabilized last Friday but rebounded weakly. It only regained the 100-DMA (19,536), but the 10-DMA (19,559) was lost again. It is expected that the adjustment is not over yet. In the short term, it is expected to struggle at the 19,500 level. The support below will look at the bulls and bears  boundary of the 250-DMA (19,301), as long as the level of 19,100 points is firmly maintained, it will regain 20,000 points in the short term, and if it continues to rebound, it will look to the previous top of 20,300 points, and a stabilization of 20,400 points will be considered a turning signal. August is an intensive period for the introduction of mainland policies, and the market sentiment is optimistic. Even though the external stock market is more volatile, the focus of Hong Kong stocks still falls on the mainland policies. We should also pay attention to the joint press conference held by the China Development and Reform Commission, the Ministry of Finance, and the State Administration of Taxation last Friday. Announced policy "Combined punch". 

European stocks remained stable, with British, French and German stock markets closing up 0.47%, 0.75% and 0.37% respectively. 

The growth of U.S. jobs in July was slightly less than expected. The market expects that the Fed will not need to raise interest rates further. U.S. bond yields have fallen from their highs, driving the U.S. stock market Dow to rise in the early and mid-term on Friday. After opening slightly higher by 14 points, it once rose again and again 290 points, with a high of 35,506. Selling pressure emerged at the end of the period, and the high fell by more than 100 points. The three major indexes all closed at close to the day's lows, among which the S&P 500 and Nasdaq also fell for 4 days in a row.

 The U.S. stock market closed, with the Dow up 150 points to 35,065; the S&P 500 dropped 23 points to 4,478; the Nasdaq dropped 50 points to 13,909. Last week, the Dow lost 1.1%, the S&P fell 2.27%, and the Nasdaq fell 2.85%.