Investment 27/2/2024

The Hong Kong stock market opened 40 points lower and then rose for a while. However, it rose to 16,777 points and was unable to go higher. It then fell by more than 100 points and closed at 16,634 points, down 91 points or 0.54%. The technology index closed at 3,393 points, down 6 points or 0.19%. The main board's trading volume for the whole day was HK$83.5 billion. 

Hong Kong stocks have risen for three consecutive weeks and once exceeded the 100-DMA (16,759). It is believed that the Hang Seng Index will consolidate near the 100-DMA in the short term. The biggest short-term resistance level for the market is the 100-DMA (17,358), but the view on the Hong Kong stock performance period is relatively cautious, because the mainland's economic performance in the fourth quarter of last year was not satisfactory, and corporate profit forecasts may be further reduced. The short-term support level is expected is the 50-DMA(16,165) level. 

This week we need to pay attention to whether the Mainland Manufacturing Purchasing Managers Index (PMI) data will remain below 50, which is the dividing line between boom and bust, and whether the performance of Lunar New Year sales and other services will improve the service industry data; the market is waiting to see whether this week's fiscal budget will News that the property market is no longer active or less active may influence the direction of the market. At the same time, we should pay attention to the policy goals set by the two sessions of the National People's Congress and the Chinese People's Political Consultative Conference early next week. In particular, the market is currently looking forward to whether fiscal policy can intensify efforts, such as further stimulating the consumer industry, which may help drive Hong Kong stocks upward to break through resistance.

 European stock markets developed individually, with British and French stocks closing down 0.29% and 0.46%, while the German stock market rose slightly by 0.02%.

 The market focus has returned to the performance of the economy. U.S. stocks were repeatedly soft on Monday as many data were released this week. After the Dow opened 13 points higher, the gain once expanded to 114 points, reaching a high of 39,245 points; the S&P 500 once rose 0.17%, and the Nasdaq, which is dominated by technology stocks, rose as much as 0.36%. The three major indexes finally retreated.

 At the close of U.S. stocks, the Dow Jones Industrial Average fell 62 points, or 0.16%, to 39,069 points; the S&P 500 dropped 19 points, or 0.38%, to 5,069 points; and the Nasdaq fell 20 points, or 0.13%, to 15,976 points.

 The U.S. dollar continued to weaken, with the U.S. dollar index falling as much as 0.22% to 103.71. The Japanese yen once fell 0.21% to a low of 150.84 per dollar. European Central Bank President Christine Lagarde said in an interview with Belgian media that the work on inflation has not yet been completed. The euro once rebounded 0.37% to $1.0863; before the Bank of New Zealand announced the results of its interest rate meeting on Wednesday, the New Zealand dollar fell by 0.56 %, at 61.62 US cents, and then the decline slowed down.