Investment 27/12/2023

Hong Kong stocks rose first and then fell before the long holiday. The Hang Seng Index opened 121 points higher and then rose as much as 236 points, reaching a high of 16,857 points. However, the mainland plans to strengthen supervision of online games, and related stocks plunged, dragging down the market. The Hang Seng Index closed at 16,340 points, down 280 points or 1.69%. The technology index closed at 3,548 points, down 162 points or 4.37%. The main board's total trading volume for the whole day was HK$141.1 billion. 

The Hang Seng Index fell 451 points, or 2.68%, for the whole week; the technology Index fell 232 points, or 6.13%, for the whole week. 

A-shares continue to be weak during the long external holidays, which is believed to bring pressure to Hong Kong stocks after the holidays. Moreover, Hong Kong stocks are still weak on many indicators and technology. The Hang Seng Index has the opportunity to test this year's low of 15,972 points. The Shanghai Composite Index has reached a seriously oversold level in the short term and should be able to rebound slightly, but the mid-term outlook is not optimistic.

 Europe's three major stock markets remain closed for the holidays. European stock markets developed individually last Friday, with British and German stocks rising 0.04% and 0.11% respectively, while French stocks fell 0.03%. Asia-Pacific stock markets held steady.

 The U.S. dollar index once fell 0.25% to 101.45; the Euro rose 0.32% to $1.1049; the Japanese yen fell as much as 0.21% to 142.63 per dollar. 

The main inflation indicators in the United States further slowed down, while consumer spending maintained growth, indicating that the economy is expected to have a soft landing. U.S. stocks developed individually before the Christmas holiday on Friday. The strength of the U.S. stock market has not stopped, but considering that it has accumulated a lot of gains and the market has been overbought for a long time, it cannot be ruled out that the S&P 500 index will need to consolidate at a high level in the short term before it can challenge the record high again.

 The three major U.S. stock indexes opened higher after the holiday on Tuesday (26th). The Dow rose 232 points at the end of the market, reaching a high of 37,617 points. It closed up 159 points, or 0.43%, at 37,545 points; the S&P 500 closed 20 points or more higher. It closed 0.42% at 4,774 points, setting another record closing high; the Nasdaq closed 81 points or 0.54% higher at 15,074 points.