Investment 19/10/2023

The mainland's latest announcement was that its GDP in the third quarter was 4.9%, and the market expected it to be 4.4%. After the data was released, the offshore RMB exchange rate rose in the short term. 

Hong Kong stocks fell first and then recovered. The Hang Seng Index fell 147 points in the early stage and found support at 17,625 points, then rose 57 points; it closed at 17,732 points, down 40 points. The HS technology index closed at 3,771 points, down 64 points. The main board's total daily turnover was HK$88.8 billion. 

The Hang Seng Index once rose above the 18,000-point mark a few days ago, but the subsequent upward trend was unsustainable and transaction volume also shrunk again. Although the Hang Seng Index returned to above the 20-DMA (17,654) yesterday, unless the transaction volume can return to the level of hundreds of billions, otherwise the market situation can only maintain a narrow range between 17,000 and 17,600 points. fall. It is now difficult for the Hang Seng Index to challenge the resistance of the 50-DMA (18,090). Based on the current external economic conditions and the development of the situation in the Middle East, there is a high chance of bottoming out. The support level is near the low of 16,830 points on November 28 last year. 

European stock markets fell across the board, with British stocks closing down 1.14%, French stocks down 0.91%, and German stocks down 1.03%. 

Tensions in the Middle East threatened to escalate. Coupled with mixed corporate performance, U.S. stocks came under pressure on Wednesday. After the Dow opened 37 points lower, the decline expanded to 399 points in the late period, reaching a low of 33,598. It still closed down 332 points at 33,665; The S&P 500 dropped 58 points to close at 4,314; the Nasdaq Composite, which is dominated by technology stocks, fell 219 points to close at 13,314.