Investment 7/3/2024

Hong Kong stocks rebounded significantly. The Hang Seng Index opened slightly higher by 4 points. It climbed more than 380 points in the morning and then retreated. It closed up 275 points or 1.7% at 16,438 points. The technology index outperformed, rising by 88 points or 2.67% at 3,412 points throughout the day. The market's turnover for the whole day was HK$102.4 billion, marking the seventh consecutive day with turnover exceeding HK$100 billion. 

The Hang Seng Index rebounded from a low of 14,800 points at the end of January to about 16,800 points at the end of last month, with a cumulative increase of more than 2,000 points. Coupled with the lack of optimism in the economic prospects of China and Hong Kong, adjustments are bound to occur. It is expected that the Hang Seng Index will have the opportunity to test the support of the 10-DMA (15,573) near the bottom of the Bollinger Band in the short term. This range is also the distribution map of bull and bear commodities, where the heavy cargo area of bull contracts is located, and the number of futures index contracts is about 3,000 tickets may influence the market trend. If there is a rebound, there will be resistance at the 10-DMA (16,693).

 European stock markets remained stable, with British, French and German stocks rising 0.43%, 0.28% and 0.1% respectively. 

Federal Reserve Chairman Jerome Powell said there will be no rush to cut interest rates until there is more confidence that inflation will continue to move towards 2%. However, the increase in ADP payrolls in the United States in February, commonly known as small non-agricultural workers, was lower than economists expected. The market will focus on Friday's February non-farm payrolls data. After the Dow opened 135 points higher, the gain expanded to 272 points, reaching a high of 38,858 points; the S&P 500 once rebounded by 0.97%, and the Nasdaq rose by up to 1.12%.

 At the close of the U.S. stock market, the Dow rose 75 points, or 0.2%, to 38,661 points; the S&P 500 rose 26 points, or 0.51%, to 5,104 points; and the Nasdaq rose 91 points, or 0.58%, to 16,031 points. 

The U.S. 10-year bond yield fell by up to 6 basis points to 4.078%. The US dollar index once fell 0.58% to 103.2; the yen once rose 0.63% to 149.1 per dollar. The European Central Bank announced the results of its interest rate meeting on Thursday, and the euro rose by up to 0.53% to $1.0917. The Bank of Canada maintained its benchmark interest rate at 5% after five consecutive meetings on Wednesday, as expected. The bank acknowledged that progress had been made on inflation, but made it clear that it was too early to consider cutting interest rates. The Canadian dollar rose 0.71% to 74.09 US cents.