Investment 14/5/2025

The Hang Seng Index opened 55 points lower at 23,494 points and then widened its losses, falling 478 points to a low of 23,070 points. It fell 441 points, or 1.87%, for the day to 23,108 points. The Technology Index fell 177 points, or 3.26%, to 5,269 points. The Main Board's turnover was HK$219.8 billion.

The market digested the news that China and the United States reached an agreement to temporarily reduce tariffs, and Hong Kong stocks gave up gains after eight consecutive days of gains. However, market funds are still ample, and the Hong Kong Interbank Offered Rate (HIBOR) has fallen across the board. Among them, the one-month mortgage-related rate has fallen for six consecutive days, causing the mortgage rate to fall below 3%. After China and the United States reached an agreement, market tensions were greatly eased; however, although tariffs were reduced, problems still exist. In addition, there are still certain variables in Sino-US relations, and it is difficult for the Chinese and Hong Kong markets to completely return to the state before the tariff war. It is expected that the Hang Seng Index can still challenge 24,000 points in the short term, but it will be difficult to break through the high of 24,874 points in mid-March before the tariff war, and the upward space is limited.

European stock markets developed individually, with British stocks falling slightly by 0.02%, while French and German stocks rose by 0.3% and 0.31% respectively.

Monthly inflation in the United States rose 0.2% in April, falling below expectations for three consecutive months. U.S. stocks developed individually on Tuesday, with the Dow Jones Industrial Average dragged down by the sharp drop in the share price of U.S. health insurance giant UnitedHealth. The Dow Jones Industrial Average opened 97 points higher before turning down, falling as much as 278 points in the final stage to a low of 42,132 points; but the S&P 500 regained its losses this year, driven by chip stocks, and once continued to rise by 1.07%, while the Nasdaq, which is dominated by technology stocks, performed relatively strongly and rose another 1.91%.

At the close of U.S. stock markets, the Dow Jones Industrial Average fell 269 points, or 0.64%, to 42,140. The S&P 500 closed up 42 points, or 0.72%, at 5,886 points, rising above the closing level of 5,881 at the end of December last year and approaching the closing level of 5,954 points on February 28 this year. Under the threat of tariffs, the S&P 500 once plunged more than 17% this year; the Nasdaq closed up 301 points, or 1.61%, at 19,010 points.

The U.S. dollar index widened its losses to 0.82% in the late trading to 100.96; the euro rose 0.97% to $1.1195; the pound rebounded 1.07% to $1.3316; the yen rebounded 0.7% to 147.43 per dollar. Bitcoin rose as much as 3.29% to $104,947.