Investment 18/7/2024

The Hang Seng Index opened 13 points higher at 17,741 points and then held within a narrow range. The high and low fluctuations were only 149 points. It rose 11 points or 0.06% for the whole day to 17,739 points. The Technology Index rose 18 points or 0.49% to 3,640 points. Main board transaction volume was HK$104.9 billion. 

Mainland China's economic growth in the second quarter was lower than expected, and there is still no news on the economic stimulus policies that the market is looking forward to. In addition, many companies took advantage of the rebound in the stock market to issue bonds or issue shares to "extract water", which limited the market rebound. Since the Hang Seng Index has fallen below the 10-DMA (17,796), the support of the 100-DMA (17,552) is extremely critical. The market outlook has the opportunity to move downwards, and 17,000 points is the support below. 

After Trump was assassinated, the market expected that his chances of being elected would greatly increase, which was good for the performance of Trump concept stocks and even US stocks. However, due to Trump's relatively tough policy towards China, if successfully elected, it may be detrimental to China's exports and even the economy, so the Chinese and Hong Kong stock markets performed weakly.

 European stock markets had mixed performances, with British stocks rising slightly by 0.28%, while French and German stocks closed down 0.12% and 0.44% respectively. 

It was reported that the United States was putting pressure on its allies to tighten chip trade with China. Semiconductor stocks were washed out, technology stocks were sold off again, and funds were transferred to other sectors. U.S. stocks developed individually on Wednesday. The Dow opened 91 points lower and then rose as much as 267 points. points, reaching a high of 41,221 points, continuing to hit a record high in the market; the S&P 500 index fell back 1.45% from its record high, and the Nasdaq Composite Index, which is dominated by technology stocks, once fell 2.9%. 

At the close of the U.S. market, the Dow Jones Industrial Average rose 243 points, or 0.59%, to 41,198 points, hitting a record closing high; the S&P Index fell 78 points, or 1.39%, to 5,588 points; the Nasdaq fell 512 points, or 2.77%, to 17,996 points.

 The U.S. dollar index fell 0.59% to 103.65; the yen rose 1.42% to 156.1 per dollar, a more than one-month high. British inflation was stronger than expected, reducing the chance of the Bank of England cutting interest rates in August. The pound rose above $1.3 for the first time in a year, reaching a high of 1.3044, up 0.54%; the euro also rebounded 0.45% to $1.0948.