Investment 25/9/2024

The Mainland has launched a combination of rescue measures. The People's Bank of China has finally released a large amount of money, cutting interest rates and reserve requirements to save the stock market, and lowering down payments for home purchases to save the property market.  The Hang Seng Index opened 326 points higher at 18,573 points and continued its upward trend. The increase once expanded to 754 points in the afternoon, reaching a high of 19,002 points, a four-month high. It closed at 19,000 points for the whole day, up 753 points or 4.12%; the technology index rose 217 points. or 5.87%, at 3,915 points.  Main board transaction volume increased to HK$242.3 billion.

 In addition to stimulating the economy, the PBOC's release of water will also benefit the sentiment of the Hong Kong stock market.  The Hang Seng Index has rapidly risen above 18,000 points in recent days due to the cooperation of transactions, and it just touched the 19,000 mark yesterday. The upward trend may still be sustainable. However, as the effectiveness of the release of water remains to be seen, the Hang Seng Index will encounter resistance when it rises to the May high of 19,706 points.  Under normal circumstances, the Hang Seng Index's target at the end of this year is 20,500 points; its target in the middle of next year is 22,000 points.

 Investors with heavy positions should take advantage of the rebound to reduce their positions, because they are afraid that China will eventually release a lot of water, and the water may end up in vain.  The property and stock markets will continue to plummet in search of bottom, and hyperinflation may be ignited by this release!  We must clearly see the extent of the policy's support for the economy and asset prices before we can make further breakthroughs.

European stock markets performed well, with British, French and German stock markets rising by 0.28%, 1.28% and 0.8% respectively.

The U.S. consumer confidence index fell sharply to 98.7 in September from 105.6 in August, the largest drop in three years and well below market expectations. The news provided justification for the Federal Reserve to further cut interest rates. Coupled with China's measures to stimulate the economy, U.S. stocks tumbled on Tuesday. Stay steady.  The Dow Jones Industrial Average opened 110 points higher and then fell for a time. Then it regained strength, rising as much as 156 points to hit a new high of 42,281 points. The S&P 500 fell 0.34%, and the Nasdaq, which is dominated by technology stocks, fell as much as 0.62%. The two indexes closed. All rise upside down.

 At the close of the U.S. stock market, the Dow Jones Industrial Average's gain shrank to 83 points, or 0.2%, to 42,208 points; the S&P Index rose 14 points, or 0.25%, to 5,732 points; and the Nasdaq Composite rose 100 points, or 0.56%, to 18,074 points.

 The US dollar index fell 0.47% to 100.37 at the end of the period; the Japanese yen fell as much as 0.75% to a low of 144.68 per dollar, and then rose 0.33% to 143.14 per dollar.