Investment 1/4/2025

The Hang Seng Index opened 219 points lower at 23,207 points, and fell 423 points to 23,002 points at one point. The decline then narrowed, and the full-day decline was 307 points or 1.31% to 23,119 points; the Technology Index fell 111 points or 2.02% to 5,394 points. The Main Board's turnover was HK$257.3 billion.


The four major banks (BOC, CCB, BOC, and Postal Savings Bank of China) will issue additional shares worth 520 billion yuan to supplement core capital, of which the Ministry of Finance plans to subscribe for 500 billion yuan. The Ministry of Finance’s subscription funds come from the issuance of special government bonds. The market is watching as US President Trump plans to impose a 20% reciprocal tariff on the world on April 2. Amid uncertain factors, the adjustment pressure on US stocks may increase. Hong Kong stocks are inevitably affected by external factors. In addition, the earnings season is coming to an end and the positive policy news from the mainland has also fermented to a certain extent. It is expected that the market will have difficulty in breaking through in the short term. The Hang Seng Index will face certain resistance when rising to the 20-DMA (23,808), and the support below is at the 50-DMA (22,448).


European stock markets came under pressure, with UK, French and German stocks falling 0.88%, 1.58% and 1.33% respectively.


US President Trump is about to announce reciprocal tariff measures, which will intensify market panic and drag down global stock markets. On the last trading day of the first quarter of this year, US stocks fluctuated repeatedly and experienced a one-day turnaround. Safe-haven assets such as US Treasuries and gold were sought after, and gold prices hit a new record high. The Dow Jones Industrial Average opened 201 points lower on Monday, and its decline widened to 435 points, hitting a low of 41,148. It then rebounded 563 points to a high of 42,147. The S&P 500 fell 1.65% to 5,488 points, its lowest level since September last year. The Nasdaq fell as much as 2.71%, and then rose slightly.


At the close of U.S. stocks, the Dow Jones Industrial Average rose 417 points, or 1%, to 42,001 points; the S&P 500 rose 30 points, or 0.55%, to 5,611 points; and the Nasdaq fell slightly by 23 points, or 0.14%, to 17,299 points.


The U.S. dollar index rose 0.22% to 104.272, and the Japanese yen rose 0.76% to 148.7 per dollar before falling. German inflation slowed to 2.3% in March, slightly lower than expected, and the euro fell 0.36% to $1.0789. Bitcoin fell 1.51% to $81,288 at one point.

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