Investment 4/11/2024

Hong Kong stocks maintained their upward trend throughout the first day of November.  The Hang Seng Index opened 110 points higher at 20,427 points, and later rose 349 points to 20,667 points. It closed up 189 points, or 0.93%, at 20,506 points throughout the day. The Technology Index fell 15 points, or 0.33%, to 4,483 points.  Main board transaction volume was HK$141.4 billion.

 The Hong Kong stock market ended in decline in October. The Hang Seng Index adjusted the 0.5 times golden ratio of the previous rise and found support when it fell to the rising gap on September 27 (19,954 to 20,268), which did not destroy the mid-term rise.  The decline has slowed in the past two weeks, but there is no signal that the correction is complete.  Due to the narrowing of volatility, large opportunities are consolidating sideways, fluctuating between 19,700 and 21,700 in the short term, waiting for a breakthrough.

 The trend of Hong Kong stocks in November will depend on three key factors: the outcome of the U.S. Federal Reserve’s interest rate meeting, the U.S. presidential election and important mainland meetings.  Although the two candidates are expected to have a greater chance of adopting tough policies towards China, the actual implementation is still unknown and it will take time to wait and see.  As for the mainland meeting, the focus is on whether the issuance of special treasury bonds will be announced at the meeting, as well as the size and life of the treasury bonds.

 European stock markets stabilized at the close, with British, French and German stocks rising 0.83%, 0.8% and 0.93% respectively.

 The United States released the last employment report before next week's presidential election on Friday (1st). Non-agricultural jobs showed almost no growth in October, with only 12,000 new jobs added. The market's expectations for an interest rate cut by the Federal Reserve increased, driving US stocks to rebound sharply on Friday.  After the Dow opened 106 points higher, the gain expanded to a maximum of 562 points, reaching a high of 42,326 points. The S&P 100 once rose by 1.18%, and the Nasdaq rose by a maximum of 1.49%. Subsequently, the gains narrowed.

 At the close of U.S. stocks, the Dow Jones Industrial Average rose 288 points, or 0.69%, to 42,052 points; the S&P Index rose 23 points, or 0.41%, to 5,728 points; and the Nasdaq Composite rose 144 points, or 0.8%, to 18,239 points.  Last week, the Dow fell 0.2%, the S&P 500 fell 1.4%, and the Nasdaq fell 1.5%.

 The U.S. dollar index once fell 0.29% to 103.679, then turned around and rose 0.35% to 104.34; the euro fell 0.47% to $1.0834; the yen fell 0.65% to 153.02 per dollar.