Investment 7/2/2024

Looking forward to the mainland's successive moves to rescue the market, Hong Kong stocks have done significantly better following the A-shares. The Hang Seng Index opened 31 points higher and continued to rise, breaking through the 16,000-point mark in the afternoon and closing at 16,136 points, up 626 points or 4.04%. The technology index closed at 3,243 points, up 204 points or 6.75%. The main board's total daily turnover was HK$128 billion. 

The People's Bank of China's reserve requirement ratio cut officially came into effect a few days ago. However, as the end of the Lunar New Year approaches and monetary conditions are tight, and the market has already reflected the relevant good news, it is believed that it will have a limited stimulating effect on the economy and stock market. Although Hong Kong stocks rebounded by more than 300 points yesterday, market expectations for an interest rate cut in March continued to cool down, and Federal Reserve Chairman Powell also sounded hawkish again, stimulating U.S. bond interest rates and the U.S. exchange rate index to rise. U.S. stocks fell overnight, and the market was expected to have short-term rebound momentum. limited. The key support level of the Hang Seng Index is at 14,700 points. If it falls below, the market outlook may fall further. On the contrary, if it can hold above it, there is a chance for a technical rebound, which is expected to be always controlled by the 50-DMA (16,299). 

European stock markets performed well, with British, French and German stock markets closing up 0.9%, 0.65% and 0.76%. 

Bond yields retreated after rising for two days in a row. U.S. stocks were mixed on Tuesday. After the Dow opened slightly higher by 12 points, the gain expanded to 165 points to 38,545 points. The S&P 500 index once rose by 0.3%, mainly technology stocks. The Nasdaq fell as much as 0.53%.

 At the close of the U.S. market, the Dow rose 141 points, or 0.37%, to 38,521 points; the S&P 500 rose 11 points, or 0.23%, to 4,954 points; the Nasdaq rebounded 11 points, or 0.07%, to 15,609 points.

 The U.S. dollar index retreated up to 0.28% to 104.16; the Japanese yen rose 0.56% to a high of 147.84 per dollar; the British pound rose 0.53% to $1.2602; the Australian dollar rose 0.66%.