Investment 17/6/2024

After the Hang Seng Index opened 84 points lower at 18,028 points, the decline once expanded to 185 points, reaching a low of 17,927 points. It closed down 170 points, or 0.94%, at 17,941 points, falling below the 18,000 mark; for the whole week, it fell 425 points, or 2.31 %; the technology index fell 31 points, or 0.84%, to 3,707 points. Main board transaction volume was HK$116.2 billion. 

For a week, the Hang Seng Index fell by 425 points;  and the Tech Index fell by 64 points. 

The Hang Seng Index rose to 19,706 last month and was blocked. It also started to adjust due to overbought, and fell below the 18,000 mark, creating greater adjustment pressure. The external environment is doing well, and the market has warmed up to the United States entering an interest rate cut cycle in the future, but it has not been able to help Hong Kong stocks. This is because Hong Kong stocks have always been more affected by the performance of the mainland economy, and the inflation and manufacturing data recently released by the mainland have both failed to boost the market. However, the Third Plenary Session of the Central Committee of the Communist Party of China is about to be held in the Mainland. The market is expecting the Mainland to take measures to rescue the market. It is expected that the Hang Seng Index will have limited room for another sharp decline in the short term. On the other hand, as the half-year end is approaching, funds need to whitewash their windows, and there are currently no particularly adverse events that have upset the market. It is expected that Hong Kong stocks will continue to consolidate at the Wanba level in the short term, with the downward 250-DMA (17,600) as an important support level. The Hang Seng Index may hover between 17,600 and 18,200 points this week.

 European stock markets fell, with British stocks falling 0.21%, German stocks falling 1.44%, and French stocks falling another 2.66%. For the whole week, French stocks have fallen by more than 6%, almost wiping out their gains this year. The market value has evaporated by nearly US$200 billion in a single week, which is equivalent to the size of the Greek economy. 

The political crisis in France continues to affect investor sentiment, with funds flowing into U.S. bonds and gold as a safe haven. Coupled with the latest weak economic data from the United States, U.S. stocks developed individually on Friday. After the Dow opened 118 points lower, the decline once expanded to 341 points, reaching a low of 38,305. point, the S&P 500 once fell 0.55%, and both indexes later recovered most of their losses; the Nasdaq fell as much as 0.43%, and eventually rose slightly, setting a new record closing high for five consecutive days. 

At the close of the U.S. market, the Dow fell 57 points, or 0.15%, to 38,589 points; the S&P 500 dropped 2 points, or 0.04%, to 5,431 points; the Nasdaq rebounded 21 points, or 0.12%, to 17,688 points. 

 Last week, the Dow fell 0.5%, the S&P 500 rose 1.6%, and the Nasdaq rose 3.2%. 

The U.S. dollar was favored, and the U.S. exchange rate index once rose another 0.58%, reaching a high of 105.81; the Japanese yen fell by up to 0.8% to 158.28 per U.S. dollar, and then rose slightly; the British pound once fell by 0.82%, as low as $1.2657. Euro fell 0.64% to $1.0668.