Investment 11/11/2024

The National People's Congress Standing Committee meeting concluded last Friday. The market is looking forward to the introduction of a new round of stimulus measures. Hong Kong stocks opened higher and then fell.  The Hang Seng Index opened 246 points higher, and once soared more than 400 points, hitting a high of 21,355 points. It then fell as much as 248 points, reaching a low of 20,705 points. It finally closed down 225 points, or 1.07%, at 20,728 points. The market turnover exceeded 2,330 billion Hong Kong dollars.

 The decline of the Hang Seng Index has slowed down in the past four weeks, and the volatility has narrowed, forming a horizontal zone. Last Friday, it once broke through the narrow horizontal range, but then recovered sharply as it approached the top of the larger range. It is expected that today the Hang Seng Index will cover the rising gap on September 27 (19,954 to 20,268), after finding support, will still fluctuate between 19,700 and 21,600 in the short term, waiting for a breakthrough.

 On November 8, the National People's Congress of China approved an increase in the debt limit of local governments by 6 trillion RMB to replace existing implicit debts, hoping to make room for local governments to better develop the economy and protect people's livelihood.  This may not be enough for local government debt with more than 100 trillion RMB.  Such weak stimulation disappointed the market. FTSE China A50 Index futures plummeted 3%, and A-shares are still likely to fall sharply.

 European stock markets came under pressure, with British, French and German stocks falling 0.84%, 1.17% and 0.76% respectively.

 The rally in U.S. stocks triggered after the U.S. presidential election continued, and investors digested the Federal Reserve's outlook for future interest rate cuts. After the Dow opened 39 points higher on Friday, its gains expanded to 427 points, reaching a peak of 44,157 points. It broke through the 44,000-point mark for the first time; the S&P 500 hit its peak again and broke through the 6,000-point mark, once rising 0.66% to 6,012 points. The Dow hit a new market high for the third consecutive day, and the S&P 500 also closed at a new high; the Nasdaq fell at most. rose 0.25%.

 At the close of U.S. stocks, the Dow rose 259 points, or 0.59%, to 43,988 points; the S&P 500 rose 22 points, or 0.38%, to 5,995 points; the Nasdaq rose 17 points, or 0.09%, to 19,286 points.

 The U.S. 10-year bond yield fell by up to 7.7 basis points to 4.265%.

 The US dollar index once rose 0.67% to 105.21, and the Euro retreated 1.07% to $1.0688.  The yen rose as much as 0.52% to 152.14 per dollar.

 Bitcoin once rose 2.3% to nearly $77,300, continuing to hit a record high.