Investment 13/10/2023

The entry of the national team into the market boosted investor confidence. Hong Kong stocks rose for the 6th day in a row, rising by more than 1,000 points, with turnover exceeding HK$100 billion . The Hang Seng Index opened 365 points higher and then traded at high levels, rising up to 397 points to a nearly one-month high of 18,290 points; it closed at 18,238 points, up 345 points. The HS technology index regained the 4,000-point mark and closed at 4,019 points, up 66 points. Main board turnover increased to HK$101.1 billion, the first time since September 22 that it has reached the 100 billion level.

 If the Hang Seng Index can stabilize at 18,000, it has the potential to challenge the 18,800 to 19,000 level. The Hang Seng Index has successfully recovered the 10-DMA (17,572) and the 20-DMA (17,714), and is close to the 50-DMA (18,240). The market may retreat today. After the adjustment, if the 10-DMA can return to above the 20-DMA early next week, a golden cross signal will appear, and the momentum of bottoming out and starting to rebound will be further obvious. In the future, there is a chance to look at the 100-DMA (18,702), but it is too early to say that will cross the 250-DMA (19,100) , i.e. the bull-bear boundary again. If there are no surprises in October, the Hang Seng Index will continue its pattern of first going low and then going high, but the only drawback is that market transactions are sparse. 

On the external front, the latest meeting minutes showed that Federal Reserve officials are divided on whether to further raise interest rates in the future. U.S. bond interest rates are showing signs of falling. If the U.S. dollar weakens, it will be good for global sentiment. The mainland also continues to be supported by good news. In addition to rumors that the mainland is issuing additional government bonds to stimulate infrastructure investment, the other four major mainland banks have also received support from Huijin Co., Ltd., and the market situation is expected to improve further. 

The performance of European stock markets was mixed, with British stocks rising 0.32%, French and German stocks closing down 0.37% and 0.23% respectively. 

U.S. inflation in September was slightly stronger than expected, raising the possibility of the Federal Reserve raising interest rates again. U.S. stocks were mixed on Thursday. The Dow opened 40 points higher and then fell. It once rose 58 points to a high of 33,863, and then the decline intensified. It fell as much as 349 points and as low as 33,455. The decline slowed down at the close; the S&P 500 index once fell by 1.18%; the Nasdaq, which is dominated by technology stocks, fell by as much as 1.23%. 

At the close of the U.S. stock market, the Dow fell 173 points to 33,631; the S&P 500 dropped 27 points to 4,349; and the Nasdaq fell 85 points to 13,574.