Investment 22/8/2024

After opening 197 points lower at 17,313 points, the Hang Seng Index once fell 278 points to 17,232 points, falling 120 points or 0.68% for the whole day to 17,391 points; the Technology Index fell 63 points or 1.82% to 3,434 points. Main board turnover was HK$93.8 billion.

 Although the Hong Kong stock market has recovered nearly 1,200 points from the low in early August, the trading volume has shrunk significantly, reflecting the cautious attitude of the market in entering the market. Yesterday, the Hong Kong stock market fell below the 250-DMA (17,279) shortly after the market opened, but fortunately recovered by the market close. However, it is expected that the Hang Seng Index will have the opportunity to test 17,000 points again in the future and remain at this level for a period of time. 

In May, Morgan Stanley raised the basic target for the Hang Seng Index by the end of June next year. However, yesterday it "turned around" and lowered the basic target from 19,150 points to 17,000 points, a sharp drop of 2,150 points or 11.2%. Under the most optimistic scenario, the target price will be lowered from 22,500 points to 20,500 points by the end of June next year, a reduction of 2,000 points or 8.89%; under the most pessimistic scenario, the target price will be 12,000 points, compared with the previous target of 12,200 points. 

European stock markets remained stable, with British, French and German stocks rising 0.12%, 0.52% and 0.5% respectively. 

The U.S. Federal Reserve released the minutes of its July interest rate meeting, showing that "the vast majority" of participating policymakers believe that a rate cut by the Federal Open Market Committee (FOMC) in September may be appropriate action. U.S. stocks have repeatedly improved. The Dow once rose 139 points, reaching a high of 40,974 points, and then turned around and fell 96 points, reaching a low of 40,738 points. The S&P 500 rose by up to 0.64%, and the Nasdaq once rebounded by 0.82%. 

At the close of U.S. stocks, the Dow rose 55 points, or 0.14%, to 40,890 points; the S&P 500 rose 23 points, or 0.42%, to 5,620 points; the Nasdaq rose 102 points, or 0.57%, to 17,918 points.

 The U.S. dollar index fell as much as 0.51% to 100.92; the euro once rose 0.41% to $1.1177; the yen once fell 1.04% to 146.77 per dollar, and then rose 0.56% to a high of 144.46.