Investment 20/3/2024

The Hang Seng Index opened 109 points lower yesterday and fell as much as 245 points as low as 16,492 points. However, there was support at the low level. The decline once shrank to 54 points. It finally closed down 207 points at 16,529 points, falling below the 10-DMA (16,673) and the 20-DMA (16,626) and 100-DMA (16,610). The technology index was at 3,528 points, down 65 points or 1.82%. The market turnover has shrunk to less than HK$ 100 billion  for two consecutive days, with only HK$90.6 billion  yesterday. 

The market is still paying attention to the mainland's economic conditions and measures to boost the economy. Even if Japan's interest rate hikes cause capital to flow out of relevant markets, the impact on Hong Kong stocks will be limited. The Hang Seng Index has some defensive power at the 50-DMA (16,166) in the short term, and the upward resistance is at the 10-DMA. If it rises above, it is expected to turn around. Wednesday is the settlement day for Hong Kong stock index futures. The market is expected to change repeatedly, but the probability of weakness is high. Since Hong Kong stocks have rebounded for 8 weeks since January 22 this year, the upward trend is not expected to be too large, so investors should be cautious. 

After the interest rate meeting, the Bank of Japan announced the end of negative interest rates and raised the benchmark interest rate from -0.1% to 0 to 0.1%, in line with market expectations. It was the first interest rate increase since 2007; at the same time, it canceled the yield curve control (YCC) policy. The yen did not rise against the dollar but fell instead. It was once close to the 150 level. The yen did not strengthen as a result. We should pay attention to the Bank of Japan's finance minister's announcement later on whether it will raise interest rates in the future. We should also pay attention to whether the trend of the yen will reverse. If it sees the 149.3 level or below, there is a chance that it will fall back after hitting the top. 

European stock markets generally rose, with British and German stock markets rising slightly by 0.2% and 0.31%, while French stocks rose by 0.65%. 

The Federal Reserve held a two-day interest rate meeting, and U.S. bond interest rates retreated from this year's highs. Wall Street stocks fell first and then rose on Tuesday. The Dow opened 29 points higher and then fell 29 points. It then continued to rise, with gains expanding at the end. It reached 332 points and reached a high of 39,122 points. At the close of the U.S. stock market, the Dow still rose 320 points, or 0.83%, to 39,110 points; the S&P Index rose 29 points, or 0.56%, to 5,178 points; the Nasdaq rose 63 points, or 0.39%, to 16m166 points. 

The US dollar index rose 0.61% to 104.06. The Bank of Japan ended its negative interest rate policy, but the yen fell 1.21% to a low of 150.97 per dollar. The Reserve Bank of Australia hinted that interest rates have peaked, dragging down the Australian dollar by up to 0.88% to a low of 65.03 US cents.The Hang Seng Index opened 109 points lower yesterday and fell as much as 245 points as low as 16,492 points. However, there was support at the low level. The decline once shrank to 54 points. It finally closed down 207 points at 16,529 points, falling below the 10-DMA (16,673) and the 20-DMA (16,626) and 100-DMA (16,610). The technology index was at 3,528 points, down 65 points or 1.82%. The market turnover has shrunk to less than HK$ 100 billion  for two consecutive days, with only HK$90.6 billion  yesterday. 

The market is still paying attention to the mainland's economic conditions and measures to boost the economy. Even if Japan's interest rate hikes cause capital to flow out of relevant markets, the impact on Hong Kong stocks will be limited. The Hang Seng Index has some defensive power at the 50-DMA (16,166) in the short term, and the upward resistance is at the 10-DMA. If it rises above, it is expected to turn around. Wednesday is the settlement day for Hong Kong stock index futures. The market is expected to change repeatedly, but the probability of weakness is high. Since Hong Kong stocks have rebounded for 8 weeks since January 22 this year, the upward trend is not expected to be too large, so investors should be cautious. 

After the interest rate meeting, the Bank of Japan announced the end of negative interest rates and raised the benchmark interest rate from -0.1% to 0 to 0.1%, in line with market expectations. It was the first interest rate increase since 2007; at the same time, it canceled the yield curve control (YCC) policy. The yen did not rise against the dollar but fell instead. It was once close to the 150 level. The yen did not strengthen as a result. We should pay attention to the Bank of Japan's finance minister's announcement later on whether it will raise interest rates in the future. We should also pay attention to whether the trend of the yen will reverse. If it sees the 149.3 level or below, there is a chance that it will fall back after hitting the top. 

European stock markets generally rose, with British and German stock markets rising slightly by 0.2% and 0.31%, while French stocks rose by 0.65%. 

The Federal Reserve held a two-day interest rate meeting, and U.S. bond interest rates retreated from this year's highs. Wall Street stocks fell first and then rose on Tuesday. The Dow opened 29 points higher and then fell 29 points. It then continued to rise, with gains expanding at the end. It reached 332 points and reached a high of 39,122 points. At the close of the U.S. stock market, the Dow still rose 320 points, or 0.83%, to 39,110 points; the S&P Index rose 29 points, or 0.56%, to 5,178 points; the Nasdaq rose 63 points, or 0.39%, to 16m166 points. 

The US dollar index rose 0.61% to 104.06. The Bank of Japan ended its negative interest rate policy, but the yen fell 1.21% to a low of 150.97 per dollar. The Reserve Bank of Australia hinted that interest rates have peaked, dragging down the Australian dollar by up to 0.88% to a low of 65.03 US cents.