Investment 22/5/2024

The Hang Seng Index opened 162 points lower at 19,473 points and continued its decline, falling as much as 460 points to 19,175 points. It closed down 415 points or 2.11% at 19,220 points, ending its three consecutive rising trends; the technology index fell below the 4,000 point mark and closed down 154 points. points or 3.74%, quoted at 3,980 points. Main board transaction volume was HK$150.5 billion.

The Hong Kong stock market has accumulated more profits for three days in a row, so there is an adjustment. If the Hang Seng Index stabilizes at the 10-DMA (19,027) and closes in the next two trading days, there is a chance to return to the 19,650 level in the short term. Although the Hang Seng Index has recorded gains in the past three trading days, the trading volume has been shrinking, showing a pattern of "rising prices and shrinking volumes". The upward momentum may not be good in the market outlook, so investors may need to wait and see the market development more cautiously. If it can return above the 19,650 level, the market outlook will still rise above the 20,000 point mark. Easing U.S. inflation and rising expectations of interest rate cuts can indirectly help Hong Kong stocks rise. 

European stock markets were soft, with British, French and German stocks falling 0.09%, 0.67% and 0.22% respectively. 

U.S. Federal Reserve officials continued to send out cautious messages on interest rate policy. U.S. stocks traded within a narrow range on Tuesday, with the three major indexes repeatedly stabilizing. Among them, the S&P 500 and the Nasdaq hit record closing highs. After opening flat, the Dow Jones Industrial Average rebounded by up to 99 points, reaching a high of 39,905 points; the S&P 500 once fell 0.19%, and the Nasdaq once retreated 0.45% from its record high, and then rose 0.26%, peaking at 16,839 points.

 At the close of the U.S. market, the Dow rose 66 points, or 0.17%, to 39,872 points; the S&P 500 rose 13 points, or 0.25%, to 5,321 points; and the Nasdaq rose 37 points, or 0.22%, to 16,832 points. 

The U.S. 10-year bond yield fell by up to 4.7 basis points to 4.3964%. The U.S. dollar index once rose 0.2% to 104.769; the euro fell 0.13% to $1.0843; the yen rose as much as 0.26% to 155.85 per dollar.