Investment 27/9/2024

After the Hang Seng Index opened 173 points higher, the gain narrowed to 47 points. Then A-shares gained strength, rising as much as 824 points to a high of 19,954 points. It closed up 795 points or 4.15% for the whole day at 19,924 points, which was the level on August 1, 2023. It closed at a high since the beginning of the day, with a cumulative increase of 1,677 points or 9.19% in the past three days; the technology index closed at 4,209 points, a surge of 285 points or 7.26%, recording the largest increase in 21 months.  The market turnover reached HK$302.8 billion, the highest since March 17, 2022, and the eighth single-day highest for Hong Kong stocks.

The stock markets of China and Hong Kong continued to "dance" after the introduction of the "combination boxing", rising for three consecutive trading days.  The Hang Seng Index soared another 795 points yesterday, approaching the 20,000-point mark, hitting a new high in nearly 14 months, and capital continued to flow in.  The Shanghai Composite Index, which is closely watched by mainland investors, just closed at the psychological mark of 3,000 points, soaring 3.61%. The turnover of the Shanghai and Shenzhen stock markets exceeded 1 trillion yuan for two consecutive days.

I believe that the market will continue to rise repeatedly. The Hang Seng Index will rise above the 20,000 mark today, and may challenge the 20,500 mark in the market outlook.  Although the Hang Seng Index has risen for many times, there is a chance for short-term correction, but the magnitude is not expected to be too large. The lower support is at 18,800 points.

European stock markets performed well, with British, French and German stock markets rising by 0.2%, 2.33% and 1.69% respectively.

The latest data showed that the U.S. economy is strong and the impact of the slowdown in the job market has not yet emerged. U.S. stocks rebounded on Thursday. After the Dow opened significantly higher by 198 points, the gain expanded to 309 points and reached a high of 42,224 points; the S&P 500 index rose 0.79% during the session. It reached a peak of 5,767 points and closed at a record high; the Nasdaq, which is dominated by technology stocks, soared by up to 1.36%.

At the close of U.S. stocks, the Dow Jones Industrial Average rose 260 points, or 0.62%, to 42,175 points; the S&P Index rose 23 points, or 0.4%, to 5,745 points; and the Nasdaq Composite rose 108 points, or 0.6%, to 18,190 points.

The U.S. dollar index fell as much as 0.43% to 100.48; the yen once fell below 145 per dollar, reaching a low of 145.21, down 0.32%.

 The price of gold has reached its peak again, with spot gold rising by up to 1.07% to a new high of US$2,685.61 per ounce.