Investment 7/9/2023

Hong Kong stocks first fell and then turned back. The HSI opened 51 points lower and then fell by up to 200 points, reaching a low of 18,256 points. It rose in the afternoon and broke through the 20-DMA (18,410), but was limited by the 18,500-point resistance, and closed at 18,449 points, down 6 points . The HS technology index closed at 4,176 points, down 16 points. The full-day turnover of the main board was HK$92.9 billion.

It is expected that the HSI will fall below the 10-DMA (18,325) today, and then test the 18,000-point mark. The market outlook may fill in the rising gap at the end of November last year (17,364 to 17,536). Although the mainland authorities launched a combination of policies last week, the rise of the Hang Seng Index was unsustainable and returned to the basic level. The reasons include that Caixin China’s service industry PMI in August fell to the lowest level of 51.8 this year, which made the market worry that it will return to the contraction level in the future ; In addition, the first-tier mainland cities "Beijing, Shanghai, Guangzhou and Shenzhen" did not sell properties as expected in the past weekends. It seems that the measures will not help revitalize the property market. 

European stock markets fell for 6 consecutive days, with British, French and German stock markets falling 0.16%, 0.84% and 0.19% respectively. 

The better-than-expected U.S. service sector data drove bond interest rates to continue to rise. The swap market showed that the probability of the Fed raising interest rates in November rose to 60%. Coupled with the pressure on heavyweight technology companies, U.S. stocks continued to lose ground on Wednesday. After opening 30 points lower, the Dow extended its decline to 350 points, reaching a low of 34,291. It still closed down 198 points at 34,443. The benchmark index fell 31 points to close at 4,465. The Nasdaq, which is dominated by technology stocks, fell by 148 points to close at 13,872, the biggest drop in the market reached 1.56%.