Investment 23/12/2024

The Hang Seng Index opened 55 points lower at 19,697 points and then struggled. It once rose 123 points to 19,875 points, and ended the day down 31 points, or 0.16%, at 19,720 points. The Technology Index rose 4 points, or 0.1%, to 4,444 points.  Main board transaction volume was HK$178.4 billion.

 The Hong Kong stock market rose at the beginning of this month and seemed to be on the verge of breaking through. However, there was considerable pressure to retreat and the trading volume decreased. The volatility of the Hang Seng Index's plus channel narrowed and turned into a sideways market, rising and falling between 19,100 and 20,400. The central axis of the channel and the 100-DMA ( 19,183) has support; the upward 50-DMA (20,073) has resistance.  The latest U.S. economic data is improving, and market expectations for the Federal Reserve to cut interest rates next year have cooled.  However, the Bank of Japan kept interest rates unchanged, the yen weakened, and the U.S. dollar exchange rate rose, which has certain support for U.S. stocks. It is believed that U.S. stocks will not change much in the short term.  On the other hand, Trump will take office as President of the United States next month. It is believed that the mainland will take measures to rescue the market depending on his policy direction. Hong Kong stocks lack good news in the short term, and the Hang Seng Index is expected to continue to move within a narrow range.

 European stock markets closed down across the board, with British, French and German stocks falling 0.26%, 0.27% and 0.43% respectively.

 President-elect Trump proposed suspending the national debt ceiling for two years. After the House of Representatives rejected a short-term funding bill proposed by the Republican Party on Thursday, the risk of a federal government shutdown increased, and leaders of the Republican and Democratic parties discussed solutions.  Later, the White House stated that President Biden had signed the government spending bill passed by Congress yesterday to avoid a partial shutdown of the federal government during the Christmas holiday.

 Last Friday was the "Quadruple witching day" for U.S. stocks, which is the settlement day for futures and options on indexes and individual stocks. Market conditions are generally relatively volatile.  Despite the crisis of the shutdown of U.S. federal government agencies, the latest core personal consumption expenditures deflator (Core PCE) slowed to 0.1% month-on-month growth, the slowest growth since May, and was lower than expected to rise 0.2%. The indicator Shows US inflation is decelerating.

 U.S. stocks fell first and then rose. The Dow Jones Industrial Average fell 195 points in the early stage and then rebounded sharply. It soared 873 points to a high of 43,216 points. The S&P 500 fell 0.59% and then rose 1.96%. The Nasdaq rose as much as 1.99% after adding about 1%.  The three major indexes narrowed their gains at the close and still maintained gains of more than 1%.

 At the close of U.S. stocks, the Dow soared 498 points, or 1.18%, to 42,840 points; the S&P 500 rose 63 points, or 1.09%, to 5,930 points; the Nasdaq rose 199 points, or 1.03%, to 19,572 points.  For the whole week, the Dow retreated 2.3%, its third consecutive week of losses; the S&P 500 dropped 2%, and the Nasdaq fell 1.8%.

 The U.S. dollar index fell by up to 0.76% to 107.59, the Euro rose repeatedly by 0.84% ​​to $1.045, and the Japanese yen rose by 0.95% to 155.95 per dollar.  Bitcoin fell sharply for two consecutive days, falling as much as 5.32% to a low of $92,149.