Investment 8/7/2024

After opening 7 points higher at 18,035 points, the Hang Seng Index once rose 76 points to 18,105 points. Then the trend turned sharply downward and closed at the day's low of 17,799 points, down 228 points or 1.26%. The four consecutive rising trends ended, but it still maintained strength throughout the week. Maintaining an increase of 81 points or 0.45%; the technology index fell 52 points or 1.44% to 3,596 points, with a main board turnover of HK$90.3 billion. 

The Hang Seng Index rose to 19,706 points in May and was blocked, and it started to adjust. After the 50-DMA (18,305) fell, it became a resistance, and the 100-DMA (17,412) provided support. If this level is maintained, the market outlook will still be promising. Since the market entered July, trading has continued to be weak. The Hang Seng Index has mostly been in a low-first-then-high pattern on trading days. The volatility during the month was only 464 points, which is still relatively small. The remaining trading days of this month may be even greater amplitude point appears. However, due to the continued sparse trading volume in the market, under the lack of motivation, even if the market can occasionally rise, it may still be a temporary withdrawal after volatility. If the trading volume is not matched, the market's rise will definitely be limited. 

 The mainland's consumer market is weak, the real estate market has not fully recovered, there are still uncertainties in the economy, and the rebound momentum of the Chinese and Hong Kong stock markets is still weak. Investors are hoping that there may be special news coming out of the Third Plenary Session of the Central Committee of the Communist Party of China this month. Investors dare not act rashly. However, if their expectations fail, beware that the stock market is expected to have greater adjustment pressure. 

European stock markets developed individually, with British and French stocks closing down 0.45% and 0.26% respectively, while German stocks rose 0.14%. 

Although the number of new non-agricultural jobs in the United States in June was higher than expected, it fell back to 206,000 from May, reflecting a slowdown in the job market and strengthening expectations that the Federal Reserve will start to cut interest rates later this year. However, the data also confirmed that the U.S. economy was weakening. U.S. stocks performed repeatedly on Friday. The Dow Jones Industrial Average fell 139 points in the early stage, reaching a low of 39,168 points. It later stabilized and rose by up to 91 points, reaching a high of 39,399 points; the S&P 500 and the Nasdaq continued to record highs. The index hit record highs at the moment and at the close, rising 0.49% and 0.98% respectively during the session, reaching highs of 5,570 points and 18,366 points.

 At the close of the U.S. market, the Dow rose 67 points, or 0.17%, to 39,375 points; the S&P Index rebounded 30 points, or 0.54%, to 5,567 points; the Nasdaq rose 164 points, or 0.9%, to 18,352 points. Last week, the Dow fell 0.5%, while the S&P 500 and Nasdaq rose 1.5% and 2.8% respectively. 

The U.S. dollar index fell 0.29% to 104.825; the yen rose 0.58% to 160.35 per dollar. The pound rose by up to 0.46%, reaching a high of $1.2819, rising for 7 consecutive days, the first time since July 2020. The euro traded at $1.0845, up 0.3%.