Investment 12/12/2023

Hong Kong stocks continued to search for bottom, once falling below the 16,000-point mark, hitting a 13-month low. After opening 185 points lower, the Hang Seng Index fell as much as 362 points to a low of 15,972 points, completely making up for the rising gap left in November last year. In the afternoon, it stabilized following the mainland A-share market and closed at 16,201 points, down 132 points or 0.81%. The technology index closed at 3,666 points, down 39 points or 1.06%. The main board's total daily turnover was HK$98.7 billion. 

It is expected that the Hang Seng Index will still consolidate at 16,000 points in the short term. There are only three weeks left in 2023, and the window-dressing effect of the market has not yet appeared. It may need to wait for mainland economic data to become more optimistic before it can rebound. The Hang Seng Index is expected to fluctuate between 15,800 and 16,600 points in the short term. The next resistance level after rising above is 20-DMA (17,100) level. 

Although the confidence of general investors has been low recently, this portfolio has invested its first capital when it fell below 16,000 points yesterday, and will invest two more when it falls below 14,000, and four when it falls below 12,000, for a total of seven capital injections. The target is 18,000 points for the Hang Seng Index by the end of next year.

 The Bank of Japan is in no rush to end negative interest rates when it meets next week because it has not yet seen enough evidence that rising wages will translate into sustainable inflation. The Japanese yen exchange rate fell sharply in response, hitting a low of 146.46 per dollar, down 1.04%. 

European stock markets developed individually, with British stocks falling 0.13%, French stocks and German stocks rising 0.33% and 0.21% respectively. This week has ushered in a super interest-rate meeting week. Investors are waiting to see the results of major central banks including the U.S. Federal Reserve. U.S. stocks rose repeatedly on Monday. After the Dow opened slightly higher by 6 points, the gain expanded to 168 points in the end, reaching a high of 36,416. point; the S&P 500 rebounded after falling 0.24%; heavy technology stocks were once under pressure, and the Nasdaq, which is dominated by technology stocks, fell as much as 0.55%. The three major indexes finally closed close to the day's high.

 At the close of the U.S. market, the Dow rose 157 points, or 0.43%, to 36,404 points, rising for the third consecutive trading day, setting a new high in the past two years on January 5 last year; the S&P 500 gained 18 points, or 0.39%, to 4,622 points; The Nasdaq rose 28 points, or 0.2%, to 14,432 points.