Investment 12/10/2023

Hong Kong stocks rose for five consecutive days, once reaching the 18,000 mark. After opening 292 points higher, the Hang Seng Index rose as much as 357 points to a high of 18,022 points, but failed to stabilize at 18,000 points and closed at 17,893 points, up 228 points. The HS Technology Index closed at 3,952 points, up 77 points. The main board's full-day turnover was HK$88.7 billion. 

The Hang Seng Index has fallen repeatedly for 34 weeks since January. It hit a new low of 17,094 points last Wednesday. However, it has rebounded on Friday in the past three weeks, narrowing the decline for the whole week. Good signal now. If the Hang Seng Index can rise with a big white candlestick in the next one or two weeks, it may be expected to bottom out in the mid-term. In the short term, the low of 16,830 points on November 28 last year is an important support, the 50-DMA (18,277) has initial resistance, and the 100-DMA (18,716) has greater resistance. If it breaks through, the 20,000-point level can be tested. 

The mainland is considering issuing an additional 1 trillion RMB of government bonds, and the market is looking forward to launching strong measures to stimulate the economy. Positive factors for the Hong Kong stock market have begun to accumulate recently, including the Chief Executive's policy address later this month, the Politburo meeting at the end of October and the Third Plenary Session of the 20th CPC Central Committee, the Federal Reserve's November interest rate meeting and the APEC Leaders' Summit, all of which are expected to provide important catalysts for the rebound. It is expected that the Hong Kong stock market will go from low to high this quarter, showing an overall inverted V-shaped trend, with the Hang Seng Index fluctuating between 16,500 points and 20,000 points. 

European stock markets developed individually, with British and French stocks falling 0.11% and 0.44% respectively, while German stocks rose 0.24%.

 As U.S. long-term bond interest rates fell, the latest producer price index (PPI) was hotter than expected, and the Federal Reserve agreed that interest rates should remain restrictive and may further raise interest rates. U.S. stocks were mixed on Wednesday. After opening 82 points higher, the Dow Jones Industrial Average once expanded to 143 points, reaching a high of 33,882. After that, it failed to rise again. It fell back 127 points repeatedly, reaching a low of 33,612. The S&P 500 rose as much as 0.48%; the Nasdaq once rose as high as 143 points, reaching a high of 33,882. rose 0.8%. The three major indexes finally rose again and again, rising for the fourth consecutive day. 

The U.S. stock market closed with the Dow rebounding 65 points to 33,804, the S&P 500 jumping 18 points to 4,376, and the Nasdaq rising 96 points to 13,659. Both the S&P 50 and the S&P 500 closed close to the market high.