Investment 25/1/2024

The People's Bank of China announced that it will lower the deposit reserve ratio by 0.5 percentage points on February 5 to provide the market with long-term liquidity of approximately 1 trillion yuan. In response, Hong Kong stocks surged by more than 600 points in late trading, approaching the 16,000-point mark, closing at 15,899 points, up 545 points or 3.55%, and a total of 938 points in two consecutive days. The technology index closed at 3,281 points, up 133 points or 4.24%. The main board's total daily turnover was HK$128.8 billion, exceeding HK$100 billion for the third consecutive day. 

The news that the Mainland has rescued the market has been positive for the Hong Kong stock market, but the rescue efforts may not be enough. Without significant improvement in the Mainland economy, the rebound of the Hong Kong stock market may not be sustainable. The Hang Seng Index has reached the 20-DMA (16,133) on the central axis of the Bollinger Band. There is some resistance. 

European stock markets performed well, with German stocks closing up 1.58% and performing better, while British and French stocks rose 0.56% and 0.91%. 

Technology stocks performed well, but good U.S. data reduced the chance of the Federal Reserve cutting interest rates soon. U.S. stocks developed individually on Wednesday. After the Dow opened 69 points higher, the gain once expanded to 158 points, reaching a high of 38,064 points. It closed 99 points or 0.26 points lower. %, at 37,806 points; the S&P 500 index rose 0.8% to a record high of 4,903 points, and closed slightly up 4 points, or 0.08%, at 4,868 points, continuing to break the historical closing record; the Nasdaq, which is dominated by technology stocks, rebounded at most by 1.27 %, it still closed up 56 points, or 0.36%, at 15,481 points, rising for the third consecutive day with the S&P 500.

 The US dollar index fell by up to 0.82% to 102.77. The yen rose 1.14% to 146.66 per dollar.