Investment 21/9/2023

On the eve of the announcement of the results of the Federal Reserve's interest rate meeting, investors are in a wait-and-see mood. Hong Kong stocks continued to be soft after opening 57 points lower. The HSI fell as much as 163 points, reaching a low of 17,833 points; it closed at 17,885 points, down 111 points. The HS technology index closed at 3,921 points, down 62 points. The main board's full-day turnover further shrank to HK$71.2 billion, the lowest in the past three months. 

The People's Bank of China announced that the one-year and five-year loan prime rates (LPR) remained unchanged in September. It is not a bad thing that the Mainland does not cut interest rates. It may reflect that the rescue measures are effective and there is no need for heavy medicine. The worst may be over and the economy may stabilize. However, Hong Kong stocks will continue to struggle at 18,000 points, because green bonds are being subscribed, draining market funds, Hong Kong stock trading is weak, and the price of gold is rising, reflecting the market's risk aversion, investors are reluctant to put funds into the stock market, and the market outlook is expected to generally. 

The HSI has the opportunity to fall back to the low of 17,573 points on August 22. If it completely covers the rising gap of 17,364 to 17,536 points on November 29 last year, it is likely to continue to find the bottom. The support level is 16,600 to 16,800 points. Due to the earlier decline, After breaking the double top neckline, the downward target is 16,198 points. 

European stock markets performed well across the board, with British, French and German stocks rising by 0.93%, 0.67% and 0.75% respectively. 

Although the recent rise in international oil prices has reignited inflationary pressures, the U.S. Federal Reserve announced at 2 a.m. local time on Thursday that it would keep interest rates unchanged and the federal funds rate target range would remain at a 22-year high of 5.25% to 5.5%, in line with expectations , this is the second time since June this year that China has stayed on hold. 

U.S. stocks first rose on Wednesday and then fell repeatedly, with the three major indexes all accelerating their dives at the end of the day and closing close to the day's lows. After the Dow opened 57 points higher, its early gains expanded to 258 points, reaching a high of 34,776; the S&P 500 once rose 0.38%, and the Nasdaq rose as much as 0.36%. After the interest rate meeting results were announced, the Dow Jones Industrial Average fell 76 points to 34,440; the S&P 500 dropped 41 points to 4,402; the Nasdaq dropped 209 points to 13,469.