Investment 2/5/2024

Hong Kong stocks closed higher on the last trading day of April. After the Hang Seng Index opened 96 points higher at 17,843 points, the increase once expanded to 155 points, reaching a high of 17,902 points. It fell 59 points in the afternoon. However, driven by the good performance of HSBC Holdings, it managed to maintain its upward trend. The Hang Seng Index finally rose by 16 points or 0.09 points. % rose, closing at 17,763 points; the technology index fell 12 points, or 0.34%, to 3,700 points. Main board transaction volume was HK$130.8 billion. 

The Hang Seng Index rose for 7 consecutive trading days. In April, it rose 1,221 points or 7.38%. The closing position has increased by 20% from the low in January this year, and coupled with the recovery of the 250-DMA  (17,700) that divides bulls and bears, theoretically it can be regarded as entering a technical bull market. If the Hang Seng Index stabilizes at 17,300 points, the rebound momentum is expected to be sustainable, with upper resistance at 19,650 points. I believe there is still room for growth from the current level. 

Wednesday was the Labor Day holiday, and major stock markets in Hong Kong and Europe were closed. British stocks closed down 0.28%. 

The U.S. S&P Index fell 1.57% on Tuesday, its biggest drop since January. It lost 4.16% in April, the worst loss this year. After meeting interest rates for two days in a row, the Federal Reserve announced that it would keep interest rates unchanged and kept unchanged for six consecutive meetings, in line with expectations. It also hinted that it had no plans to cut interest rates in the short term and at the same time slowed down the scale of quantitative tightening (QT). The news had a slight impact on U.S. stocks; Later, Chairman Powell said at a press conference that the next action of the authorities was unlikely to be to raise interest rates. This stimulated the Dow Jones Industrial Average to soar 533 points briefly, reaching an intraday high of 38,349 points. However, it encountered selling pressure at the high level and closed only up less than 100 points; the S&P 500 and the Nasdaq Composite Index rose by less than 100 points. It weakened repeatedly, mainly due to the fall in chip stocks, which dragged down investment sentiment. NVIDIA's stock price fell 3.9%.

 Corporate performance was mixed. After the Dow opened 29 points higher, it maintained an increase of more than 100 points before and after the interest rate meeting. After the interest rate meeting, the market surged and rebounded. Most of the increase of more than 500 points evaporated, and it closed up only 87 points or 0.23%. closed at 37,903 points; the S&P 500 index closed down 17 points, or 0.34%, at 5018 points, having climbed 1.2% after the interest rate meeting; the Nasdaq, which is dominated by technology stocks, closed down 52 points, or 0.33%, to 15,605 points, after the interest rate meeting. At most, it rose by 1.71%. 

The U.S. dollar index once retreated 0.65% to 105.53; the Japanese yen rose by up to 3.02% to 153.03 per dollar.