Investment 18/4/2024

The Hang Seng Index opened 23 points lower at 16,225 points and then fluctuated in a narrow range, with a range of 160 points throughout the day. It closed up 2 points, or 0.01%, at 16,251 points, ending four consecutive losses; the Technology Index rose 2 points, or 0.07%, to 3,340 points. Main board turnover was HK$99.1 billion.

The performance of external stock markets has been volatile recently. The market is concerned about the escalating geopolitical situation in the Middle East. Coupled with the continued high oil prices and strong U.S. inflation and economic growth, investors are worried that the Federal Reserve may delay the interest rate cut schedule or even raise interest rates again, further dampening investment sentiment. On the other hand, the interest rate on the 10-year U.S. Treasury bond has risen again, which has also attracted capital flows into the bond market, making it more difficult for the stock market to perform well. The Hong Kong stock market has been restricted by the 17,000 level many times, falling nearly 900 points in the past four trading days, and is expected to continue to fall mainly at the 16,500 level in the short term.

 European stock markets were stable across the board, with British, French and German stocks rising by 0.35%, 0.62% and 0.02% respectively. 

The market is temporarily digesting the news that the Federal Reserve has postponed an interest rate cut, and U.S. bond interest rates have softened. However, U.S. stocks first rose on Wednesday and then recovered. After the Dow opened 150 points higher, the gain quickly expanded to 237 points, and then started to fall, reaching a low of 37,611 points, with a decline of 187 points; the S&P 500 once fell repeatedly by 0.87%, and the Nasdaq fell as much as 1.33%.

 The US market closed, the Dow The index retreated 45 points, or 0.12%, to 37,753 points; the S&P 500 fell 29 points, or 0.58%, to 5,022 points; the Nasdaq fell 181 points, or 1.15%, to 15,683 points.

 The U.S. dollar index retreated 0.37% to 105.87; the yen rose 0.37% to 154.16 per dollar. The Euro rose as much as 0.58% to $1.0681, with Bundesbank President Joachim Nagel pointing out that inflation in the Eurozone is slowing and the chances of the European Central Bank cutting interest rates in June are increasing. British inflation in March was stronger than expected, cooling the Bank of England's interest rate cut expectations. The pound once rose 0.45%, reaching a high of $1.2482.