Investment 20/11/2024

The Hang Seng Index opened 123 points higher at 19,699 points. The high had risen 181 points to 19,758 points. In the afternoon, it fell 54 points to a low of 19,522 points. It closed up 87 points or 0.44% at 19,663 points for the whole day; the technology index rose 53 points or 1.23%, reported at 4,395 points.  Main board turnover was HK$121.9 billion, the lowest since the week and the fifth consecutive trading day of reduced turnover.

 The recent trend of Hong Kong stocks has been dominated by mainland policies. The market was not too convinced by the pace and actual amount of earlier rescue measures, dragging Hong Kong stocks down to the range of 20,000 to 21,500 points last month.  The market still needs time to wait and see the actual effectiveness of the rescue measures. It is difficult for Hong Kong stocks to make a breakthrough in the short term. The short-term resistance of the Hang Seng Index is expected to be at 20,000 points, and the current value probability is not high.  Although some foreign brokerages have been bearish on Hong Kong stocks recently, HSBC Global Research raised its target for the Hang Seng Index by the end of next year by 7% to 23,420 points.

 Geopolitical instability has plagued European stocks, with British, French and German stocks falling 0.13%, 0.67% and 0.67% respectively.

 Ukraine reportedly used missiles made by Western countries to attack targets in Russia for the first time. At the same time, Russian President Vladimir Putin agreed to update the code for the use of nuclear weapons. Any country's conventional attack against Russia and Belarus may face a nuclear response.  The market is worried that the Russia-Ukraine war has entered a dangerous new stage. U.S. stocks developed individually on Tuesday. After the Dow opened 146 points lower, the decline once expanded to 450 points and hit a low of 42,938 points. The Nasdaq once fell 0.54%, but quickly climbed from its lows, rising as much as 1.07%.  In fact, the impact of geopolitics on the market will only be short-lived. I believe that US President-elect Trump will take office soon and Russia will have no incentive to escalate the situation.

 At the close of the U.S. market, the Dow Jones Industrial Average closed at 43,268 points, down 120 points, or 0.28%; the S&P Index rose 23 points, or 0.4%, to 5,916 points; the Nasdaq rose 195 points, or 1.04%, to 18,987 points.

 The U.S. dollar index once fell 0.16% to 106.11; the euro once fell 0.7% to $1.0524, and the yen rose as much as 0.89% to 153.29 per dollar, before turning slightly lower.  The euro fell 0.58% against the Swiss franc to a two-month low of 0.9305, before recovering most of its losses.

 Bitcoin rose as much as 4.1% to about $94,000.