Investment 20/5/2024

The mainland's latest economic data was mixed, which once dragged down Hong Kong stocks last Friday. However, with the announcement of multiple measures to rescue the property market in the afternoon, Hong Kong stocks rebounded. 

The Hang Seng Index opened 148 points higher at 19,525 points and then expanded its gains. However, it failed to challenge 19,600 points in the early stage and then turned around and fell back 33 points to a low of 19,342 points. In the afternoon, driven by the good news, it once rose 225 points to 19,602 points, setting another new record. A new high in nine months, it closed up 177 points or 0.91% for the day at 19,553 points, and rose 589 points or 3.11% for the week; the technology index rose 40 points or 0.99% to 4,112 points. Main board transaction volume was HK$179.3 billion. 

Although the market is still undecided on when the U.S. Federal Reserve will cut interest rates, concerns about interest rate hikes have been temporarily eliminated, and corporate profits have also grown well in the first quarter, which has caused funds to return to the investment market. U.S. stocks are expected to maintain a pattern of large gains and small retreats. As for the Hong Kong stock market, it has also reached the 19,000 level, but it is expected to have certain resistance when it rises to the 20,000 level. In fact, the Hang Seng Index has already risen a lot from its lows. In addition, the rise has been too rapid and is seriously overbought. It is expected that there will be a major adjustment soon. However, as long as it does not fall below the 10-DMA (18,847), the market outlook can still continue again. superior. If it can rise above 19,650, the midline target is: 22,500, the neckline of a double bottom formed from the low in October 2022 and the low in January this year. 

Hong Kong stocks have risen for four consecutive weeks. Although there is an overbought signal, due to active market conditions and the satisfactory performance of many companies, the Hang Seng Index has the ability to challenge the 20,000-point mark. According to statistics, among the world's 20 largest stock markets, 14 major stock market indexes including the United States, Europe, Canada, Brazil, India, Japan and Australia are at or close to historical highs. The MSCI Global Index also rose to a record high again last Friday. In comparison, even if the Hang Seng Index touches 20,000 points, it still lags behind major global stock markets. 

European stock markets were soft, with British, French and German stock markets falling 0.22%, 0.26% and 0.18%. 

The market has digested the positive factors that the Federal Reserve may cut interest rates later this year. U.S. stocks performed repeatedly on Friday, with the three major indexes ultimately developing individually. The Dow regained momentum at the end of the day and closed above 40,000 points for the first time in its history, setting a new record high; the S&P 500 Index repeatedly turned positive, while the Nasdaq Index repeatedly turned weaker. After the Dow opened 42 points higher, it jumped 141 points at the end, reaching a high of 40,010 points, failing to break through the previous day's market high of 40,051 points; the S&P 500 once rose 0.16%; the Nasdaq, which is dominated by technology stocks, once rose 0.17%. Later it turned down 0.51%. 

At the close of the U.S. market, the Dow rose 134 points, or 0.34%, to 40,003 points; the S&P 500 rose 6 points, or 0.12%, to 5,303 points; the Nasdaq fell 12 points, or 0.07%, to 16,685 points. For the whole week, the Dow rose 1.2%, marking its fifth consecutive week of gains; the S&P 500 rose 1.5%, and the Nasdaq rebounded 2.1%. 

The U.S. exchange rate index once rose 0.33% to 104.8; the yen once fell 0.38%, as low as 155.98 per dollar; the euro fell as much as 0.29% to $1.0836.