Investment 18/10/2024

After the Hang Seng Index opened 185 points higher at 20,471 points, it rose 496 points to 20,783 points. Then the increase gradually narrowed. It turned from rising to falling in the afternoon, once falling 309 points to 19,977 points. It closed down 207 points or 1.02% for the whole day at 20,079 points, the fourth consecutive day of decline; the technology index fell 52 points or 1.19% to 4,349 points.  Main board transaction volume was HK$191.2 billion.

 The market is waiting for the next round of economic stimulus measures in the Mainland, coupled with the weakening of the RMB exchange rate, Hong Kong stocks have seen significant adjustments recently.  However, considering that the index has fallen by nearly 3,000 points from its high, I believe that the 20-DMA (20,349) has some support.  In fact, the mainland is very determined to stimulate the economy. With the fiscal policy, it should have positive help for the stock market. It is not appropriate to be overly pessimistic about the market outlook.  As long as the Hang Seng Index maintains its 20-DMA level and cooperates with the next round of policy news, there is an opportunity to reach the 10-DMA (21,254) to reverse the weak trend.

 European stocks performed well across the board, with British, French and German stocks rising 0.67%, 1.22% and 0.77% respectively.

 TSMC's U.S. ADR stock price rose 9.8%, hitting a record closing high. It hit a peak of $212.6 during the session; TSMC's outstanding performance drove the overall chip stocks to recover. U.S. stocks developed individually on Thursday. After the Dow opened 42 points higher, the gains once expanded. to 212 points, reaching a high of 43,289 points, setting a new current market record, and closing at a record high; the S&P 500 index also broke through the top, rising 0.62% to 5,878 points, but repeatedly weakened at the close; the Nasdaq, which is dominated by technology stocks, rose by up to 0.95 %, almost all gains evaporated at the close.

 U.S. stocks closed at 43,239 points, with the Dow Jones Industrial Average up 161 points, or 0.37%; the S&P Index fell 1 point, or 0.02%, to 5,841 points; and the Nasdaq Composite rose 6 points, or 0.04%, to 18,373 points.

 Bill Gross believes that the bull market in U.S. stocks over the past five years is coming to an end, and the rise will slow down in the future, and investors should expect returns to decline.  He said, “No bear market, but it’s not the same bull market anymore ”

 The U.S. exchange rate index once rose 0.27% to 103.874; inflation in the Eurozone in September was slower than originally announced. Traders bet that the European Central Bank has a 16% chance of cutting interest rates by 0.5% in December. The Euro fell 0.47%; the Japanese yen fell 0.45%. It fell as low as 150.32 per dollar, falling below 150 for the first time since August 1.