Investment 12/9/2024

After the Hang Seng Index opened 182 points lower at 17,051 points, the decline once extended to 269 points, reaching a low of 16,964 points. The decline narrowed in the afternoon, falling 125 points or 0.72% for the whole day, to 17,108 points; the technology index rose by less than 1 point, to 3,450 points. point.  Main board transaction volume was HK$105.7 billion.

 U.S. stocks were mixed overnight as the market watched the U.S. presidential candidates hold their first televised debate to speculate on who would win the White House.  In addition, the United States is about to release core CPI data, which is believed to have some implications for the Federal Reserve's interest rate cut in September.  Hong Kong stocks continue to be weak. The Hang Seng Index has fallen below the 250-DMA (17,245) that divides bulls and bears. The initial support of 17,000 seems reluctant. In the short term, there may be a rebound due to oversold. The 250-DMA and the gap in the decline last Wednesday (17,531 to 17,583) being the resistances and are large, and the market outlook is expected to test the midline support, which is the previous low of 16,441 points.  The U.S. presidential election is expected to play the China card heavily, so investors should be cautious.

 European stock markets developed individually, with German stocks closing up 0.35%, and British and French stocks also falling more than 0.1%.

 U.S. core inflation unexpectedly strengthened in August, reducing the chances of the Federal Reserve cutting interest rates by 0.5% next week.  U.S. stocks were under heavy selling pressure in the early hours of Wednesday. The Dow opened 98 points lower and then continued to decline. The decline once expanded to a maximum of 743 points, and once fell below the 40,000 mark, reaching 39,993 points. The S&P 500 index fell by as much as 1.61%, mainly in technology stocks. The Nasdaq also turned around and fell 1.4%, and the VIX volatility index, commonly known as the "fear index", rebounded as much as 12.21% to 21.41.  However, the situation in the U.S. stock market turned around in a single day. Driven by the surge in technology stocks, the three major indexes eventually rose. The Nasdaq rose by more than 2%, and the Dow jumped by more than 100 points.

 At the close of the U.S. market, the Dow Jones Industrial Average rose 124 points, or 0.31%, to 40,861 points; the S&P Index rose 58 points, or 1.07%, to 5,554 points; and the Nasdaq rose 369 points, or 2.17%, to 17,395 points.

 The U.S. exchange rate index rebounded 0.19% from its low point to 101.82. The Japanese yen rose 1.21% to 140.71 per dollar, a new high this year. The European Central Bank is expected to cut interest rates by 0.25% on Thursday, and the Euro fell 0.16% to $1.1002.