Investment 6/8/2024

Global stock markets were shaken violently, and Hong Kong stocks were not immune to the shock, hitting their lowest level in more than three months. After the Hang Seng Index opened 268 points lower at 16,676 points, the decline once narrowed to less than 1 point. However, the selling pressure intensified in the afternoon and once fell 504 points to 16,441 points. It fell 247 points or 1.45% throughout the day to 16,698 points, the third consecutive decline. On the trading day; the technology index fell 46 points, or 1.36%, to 3,339 points. Main board transaction volume was HK$135 billion. 

As expected, the Hang Seng Index fell to 16,670 points close to the last high adjustment fibo of 0.618. Technically, the Hang Seng Index has fallen below multiple moving averages and closed below the central axis of the Bollinger Band for three consecutive weeks. The market outlook is likely to test the bottom of the channel (15,915). In the weakest scenario, the Hang Seng Index may even fall to its low of 14,794 points at the beginning of the year.

 The Bank of Japan unexpectedly raised interest rates, and the yen continued to strengthen. The exchange rate soared 3.3% on Monday, reaching a seven-month high of 141.7 per dollar. As the wave of unwinding continued, Japanese stocks plummeted! The Nikkei closed down more than 4,451 points, down nearly 26% from its high, and fell into a bear market.

 European stock markets collapsed, with British, French and German stocks falling 2.04%, 1.42% and 1.82% respectively. 

Global stock markets suffered a "Black Monday" as concerns about the U.S. economy grew and the Japanese yen carry trade continued to unwind. U.S. stocks have been selling in a panic for three consecutive days. After the Dow opened 681 points lower on Monday, the decline once expanded to 1,237 points, reaching a low of 38,499 points. The S&P 500 index once plummeted 4.25%, with nearly 98% of its constituent stocks falling; the Nasdaq fell as much as 6.36%. . The VIX volatility index, commonly known as the "fear index", surged as much as 181% to 65.73, reaching levels at the beginning of the COVID-19 outbreak. 

At the close of U.S. stocks, the Dow still fell 1,033 points, or 2.6%, to 38,703 points; the S&P 500 dropped 160 points, or 3%, to 5,186 points; and the Nasdaq fell 576 points, or 3.43%, to 16,200 points. 

The U.S. dollar index fell as much as 1.02% to 102.16; the Euro rose 0.89% to $1.101. 

The global market panic spread to the commodity market, with London copper futures falling below US$9,000 per ton and falling 3.7% to US$8,718.5; spot gold once fell 3.23% to US$2,364.43 per ounce.