Investment 24/10/2023

Hong Kong's market  closed on Monday for the Double Ninth Festival holiday. 

Last Friday, the Hong Kong stock market followed the external market to find the bottom. The Hang Seng Index opened 168 points lower and then sluggishly quarreled. It once rose 13 points and hit a high of 17,309 points before turning back. It fell 177 points in late trading and hit a low of 17,118 points, approaching the low of the beginning of the month. It closed at 17,172 points, down 123 points; the HS technology index hit a new low in the past six months, closing at 3,662 points, down 38 points. The main board's total daily turnover was HK$82.7 billion. 

The Hang Seng Index continued to retreat last week, falling 641 points, or 3.6%, for the whole week; the HS Tech index fell 217 points, or 5.6%, for the whole week.

 The economic data released by the Mainland recently were better than expected, and there is a chance that the economy will achieve the 5% economic growth target this year. Therefore, there may not be any major policy launches in the short term. A-shares are not affordable at all, interest rates are rising again, and the journey of finding the bottom for Hong Kong stocks is not yet over. The Hang Seng Index is expected to fall below the psychological support of 17,000 points today and test the low of 16,830 points on November 28 last year. Many factors such as geopolitics, high debt interest rates, and concerns about domestic property debt have affected investors' willingness to enter the market. The market lacks upward momentum. Going by the trend, the next key support level is around 15,800 points. In a weaker scenario, the Hang Seng Index will return to the low of 14,597 at the end of October last year. 

European stock markets showed individual developments on Monday, with British stocks falling 0.37%, French stocks rising 0.5% in late trading, and German stocks rising slightly by 0.02%.

 The market is increasingly expecting the U.S. Federal Reserve to keep interest rates high for longer than originally expected. The 10-year bond yield broke through the psychologically important mark of 5% on Monday for the first time since 2007. The news dampened investor sentiment, and the situation in the Middle East remains unstable. , the U.S. Dow Jones Industrial Average fell more than 200 points in the early stage, and was still under repeated pressure at the close; however, as bond interest rates softened, technology stocks that are more sensitive to interest rates stabilized, driving the Nasdaq to become stable. After the Dow opened 134 points lower, the decline expanded to 235 points, reaching a low of 32,892 points. However, it quickly recovered its losses and rose by 107 points, reaching a high of 33,234 points. The S&P 100 once turned up 0.75%; after the Nasdaq fell 1.04%, It has rebounded by 1.23% at most.

 At the close of the U.S. market, the Dow fell 190 points to 32,936 points; the S&P 500 fell 7 points to 4,217 points; the Nasdaq rose 34 points to 13,018 points, ending its losing streak in the past four trading days.