Investment 27/1/2025

The Hang Seng Index opened 142 points higher at 19,842 points and maintained its upward trend, rising 443 points to 20,144 points. It rose 365 points or 1.85% for the day to 20,066 points. The Technology Index rose 142 points or 3.14% to 4,657 points.  The Main Board's turnover was HK$159.8 billion.

 The Hang Seng Index rose with a white candle last week, confirming the positive pattern.  The 100-DMA (19,731) and the 20,000-point mark were broken last week and are challenging the previous rebound high of 20,200 points. If it breaks through this mark, the midline is expected to hit the 22,700-point level again.  However, the Lunar New Year of the Dragon is coming to an end. There is only one and a half days left for the Hong Kong stock market this week. Today is the last trading day for the mainland A-shares. After that, the long Lunar New Year holiday will begin. Due to the lack of northbound funds, the trading volume will drop significantly. Unless investors If you are particularly optimistic, there is no need to rush to purchase before the Chinese New Year.  On the other hand, although the Federal Reserve may accelerate the pace of interest rate cuts this year, which is good for the US stock market, the stimulus effect on Hong Kong stocks is limited because the mainland economy may not see much improvement in the first half of the year, and the Hong Kong economy is also weak, with corporate profit growth slowing down. There is not much room for upward movement and 22,700 points may be the ceiling.

 European stock markets lacked direction, with UK and German stocks falling 0.73% and 0.08% respectively, and French stocks rising 0.44%.

 U.S. stocks softened last Friday (24th), with the three major indexes ending their four-day winning streak.  The Dow opened 31 points lower and then fell 232 points to 44,332 points, mainly due to the pressure on heavyweight financial, technology, industrial and medical-related stocks; the S&P 500 rose as much as 0.15% to 6,128 points, a record intraday high. The Nasdaq rose 0.32% at one point, reaching a record high. Both eventually fell back and forth from their highs.

 At the close of U.S. stock markets, the Dow Jones Industrial Average was at 44,424, down 140 points, or 0.32%; the S&P 500 fell 17 points, or 0.29%, to 6,101; and the Nasdaq fell 99 points, or 0.5%, to 19,954.

 The U.S. dollar index fell as much as 0.77% to 107.22; the euro rebounded 1.01% to $1.0523.  The Bank of Japan raised interest rates by 0.25%, but the yen first rose and then rebounded, once rising by 0.78% to 154.85 per dollar.