Investment 30/10/2023

After the Hong Kong stock market held the 17,000 level, optimist counterattacked. The Hang Seng Index opened 115 points higher and rose as much as 453 points to a high of 17,497 points. It closed at 17,398 points, up 354 points and regained the 10-DMA (17,376). The HS technology index closed at 3,806 points, up 93 points. The main board's total daily turnover was HK$91.4 billion. 

Hong Kong stocks continued to improve last week, with the Hang Seng Index rising by 226 points, or 1.3%, for the whole week; the HS Tech Index rose by 144 points, or 3.9%, for the whole week. 

U.S. bond interest rates continue to remain high, dragging down global market sentiment. However, the Federal Reserve may not allow the rise in bond interest rates to avoid dragging down the economy and asset markets. It believes that the U.S. bond interest rate may reach a peak if it rises to 5% to 5.2%. In addition, mainland economic data may not be overwhelmingly bad. The Hang Seng Index has adjusted a lot from its highs. As the negative factors gradually dissipate, the room for further declines is limited.

 The Hang Seng Index peaked at 31,183 points in February 2021, bottomed out at 14,597 points in October last year, and rebounded to 22,700 points in January this year, just about 0.5 times the fibo of the previous decline. It then fell in a downward channel, last Monday It fell close to the low of 16,830 points on November 28 last year and found support. A big white candle appeared on the daily chart last Friday. If the 10-DMA (17,395) rises above the 20-DMA today and tomorrow and reaches a golden cross, it is expected to rebound further. The weekly forecast will challenge the 20-day (17,483) and 50-day (17,848) resistances. 

European stock markets came under pressure, with British, French and German stocks closing down 0.86%, 1.36% and 0.3% respectively. 

U.S. stocks showed individual trends on Friday. U.S. consumer inflation expectations increased sharply, and the stock prices of oil and gas stocks and banking stocks were under pressure. The Dow opened less than 2 points lower and then fell repeatedly. It fell as much as 457 points and as low as 32,327 points before closing down. The trend narrowed slightly; the S&P 500 index once rose 0.47%, and then fell 0.81%; however, the satisfactory performance drove the stock prices of technology companies to rebound, with Intel and Amazon rising sharply, supporting the Nasdaq, which is dominated by technology stocks, to rebound by up to 1.4%.

 U.S. stocks closed, with the Dow Jones Industrial Average falling 366 points to 32,417 points; the S&P Index falling 19 points to 4,117 points, but more than 10% lower than the closing price on July 31, technically falling into a correction zone; the Nasdaq's gain shrunk to 47 points. It was quoted at 12,643 points.

 For the whole week, the Dow Jones Industrial Average fell 2.1%, the S&P 500 fell 2.5%, and the Nasdaq fell 2.6%.