Investment 17/10/2024

The Hang Seng Index opened 174 points lower at 20,144 points and then struggled. It once rose 229 points to a high of 20,548 points. It closed 31 points or 0.15% lower for the whole day at 20,286 points, falling for the third consecutive day; the technology index fell 48 points or 1.09 %, reported 4,402 points.  Main board transaction volume was HK$208.3 billion.

The policy address is released and has limited stimulating effect on the market.  However, the mainland has successively introduced measures to rescue the market. The People's Bank of China, the Ministry of Housing and Urban-Rural Development, and others held a press conference today (17th) to introduce the situation of promoting the stable and healthy development of the real estate market. In line with the national policy, the performance of domestic real estate has been outstanding.  The decline in Hong Kong stocks seems to have stabilized, but the Hang Seng Index must regain its 10-DMA (21,491) to reverse the weakness.  If the Hang Seng Index fails to hold on to the rising gap of 19,954 points at the end of September, it may further test 19,362 points, which is equivalent to rising from the low of 16,964 points in September to the high of 23,241 points in October , the adjusted golden ratio is 0.618 times.

The performance of European stock markets was mixed, with British stocks rising 0.97%, German stocks falling 0.27%, and pressure on luxury goods stocks dragging French stocks down 0.4%.

U.S. stocks fell first and then rose on Wednesday. The Dow Jones Industrial Average opened 33 points lower and then turned upwards. It recovered up to 360 points at the end of the period, reaching a maximum of 43,100 points. The S&P 500 rose 0.54% repeatedly, and the Nasdaq once fell 0.55%. After that, it rebounded up to 360 points and reached a maximum of 43,100 points rose 0.37%.

 The U.S. stock market closed at 43,077 points, with the Dow Jones Industrial Average up 337 points, or 0.79%; the S&P Index rose 27 points, or 0.47%, to 5,842 points; and the Nasdaq Composite rose 51 points, or 0.28%, to 18,367 points.

The U.S. dollar index once rose 0.34% to 103.61, and the yen fell 0.4% to 149.81 per dollar.  The European Central Bank is expected to lower the deposit interest rate by another 0.25% to 3.25% on Thursday. The euro fell by up to 0.32% to $1.0854. British inflation fell back below the official target of 2%. The pound fell below the $1.30 mark for the first time since August. It fell as low as $1.2976, down 0.7%.

 Affected by the expectation of another interest rate cut by the European Central Bank, gold bucked the trend and rose, creating a situation where gold and the US dollar were flying together. Gold was about to break through the resistance line and hit a new all-time high again.