Investment 21/5/2024

Hong Kong dollar offered interest rates hit a four-month high, but Hong Kong stocks continued to rise. The Hang Seng Index opened 67 points higher at 19,621 points, and the increase once expanded to 152 points, reaching a high of 19,706 points, setting another nine-month high. It closed up 82 points or 0.42% for the whole day, at 19,636 points, rising for three consecutive trading days; the technology index It rose 22 points or 0.55% to 4,135 points. Main board transaction volume was HK$156.4 billion.

 The rising momentum of Hong Kong stocks comes from the mainland, with the continuous inflow of funds from the north. I believe there is a good chance that the Hang Seng Index will briefly challenge 20,000 points this week. However, because of the rapid rise, there is also considerable pressure for a correction. At this stage, we should pay special attention to the short-selling ratio of the market. If it reaches 20% or above, it means that the pressure for a correction in the market is increasing. It is expected that the Hang Seng Index will take 19,650 points as the central axis to maintain a contentious situation. If it can stick to the 10-DMA (18,963), it can indeed rise above the 20,000-point mark after a healthy adjustment. Optimistically, the long-term target is 22,500. 

European stock markets performed well, with British stocks closing 0.05% higher and French and German stocks both rising 0.35%.

 The market continues to assess the outlook for U.S. interest rates and the development of the situation in the Middle East, and is awaiting the minutes of the Federal Reserve's last interest rate meeting to be released on Wednesday. U.S. stocks developed individually on Monday. After opening low, the Dow Jones Industrial Average rose 73 points to a high of 40,077 points; it then fell repeatedly. , once fell 216 points in the late period, reaching a low of 39,787 points; the S&P 500 rose by up to 0.42%, and the Nasdaq once rose 0.83%, hitting a record high. 

At the close of the U.S. market, the Dow still fell 196 points, or 0.49%, to 39,806 points, while the S&P 500 rose slightly by 4 points, or 0.09%, to 5,308 points; the Nasdaq rose 108 points, or 0.65%, to 16,794 points. 

The U.S. 10-year bond yield rose by up to 3.7 basis points to 4.457%. The US dollar index once rose 0.2% to 104.649; the euro fell 0.14% to $1.0854; the yen fell by up to 0.4% to 156.3 per dollar.