Investment 27/10/2023

The Hong Kong stock market was so weak, but luckily the 17,000 level was lost and recovered. The situation between Israel and Palestine heated up, and risk aversion in the market rose. The Hang Seng Index rose nearly 100 points in the early part and then fell along with the outside world. It fell as much as 168 points and as low as 16,917 points. It recovered its losses in the afternoon and closed at 17,044 points, down 40 points. The HS technology index closed at 3,712 points, up 11 points. The main board's total daily turnover was HK$80.8 billion. 

The U.S. stock market came under pressure the next night, which dragged down the sentiment of the Hong Kong stock market. The Hang Seng Index once fell below the 17,000 mark. As expected, the 10-DMA (17,479) fell below the 20-DMA (17,494), and a death cross signal was now present. The market is paying attention to the U.S. Federal Reserve's interest rate meeting next week. Even if interest rates remain unchanged, it does not rule out the possibility of raising interest rates in December. The continued high interest rate environment will affect global liquidity and asset allocation, which will be detrimental to the stock market, especially Chinese stocks. emerging markets within. The sentiment in the Hong Kong stock market has weakened recently. However, although the mainland's economic data for the third quarter and September were better than expected, the economic outlook still needs to be improved, and the market outlook is not optimistic. The Hang Seng Index may return to the low of 16,830 points on November 28 last year. However, the The support is not strong, and the market will bottom out further at any time, with the next key support being 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 closed lower, with British, French and German stocks falling 0.81%, 0.38% and 1.08% respectively. 

The U.S. economy recorded its fastest growth in nearly two years in the last quarter, but the market is increasingly concerned about the deterioration of corporate profits. U.S. stocks remained under pressure on Thursday. The Dow Jones Industrial Average fell nearly 300 points repeatedly. Selling pressure was heavy on technology stocks. Share prices fell sharply after the Meta results. The decline dragged down the Nasdaq to technically fall into a correction zone, and the S&P 500 index also entered a correction zone during the session. The Dow opened slightly lower by 18 points and then rose by 69 points, reaching a high of 33,105 points; then it turned around and fell 291 points, reaching a low of 32,743 points; the S&P 500 fell by up to 1.4%, and its intraday low was more than 10% lower than its recent high. Technically It once fell into a correction zone; the Nasdaq, which plunged 2.4% the previous day, once plunged another 2.2%. 

U.S. stocks closed, with the Dow still down 251 points to 32,784 points; the S&P 500 down 49 points to 4,137 points; the Nasdaq dropped 225 points to 12,595 points, which is technically below the 200-day moving average and below its July high. If it exceeds 10%, it falls into the adjustment zone.