Investment 28/5/2025

The Hang Seng Index opened 65 points lower at 23,216 points and then experienced a struggle between bulls and bears. It fell 114 points to 23,167 points. It rose 137 points to 23,419 points in the afternoon. It rose 99 points or 0.42% for the whole day to 23,381 points. The Technology Index rose 24 points or 0.48% to 5,182 points. The Main Board's turnover was HK$203.2 billion.

The Hang Seng Index still has a chance to challenge 24,000 points, but it will be difficult to break through the mid-March high of 24,874 points. The important support of the 50-DMA (22,775) should not be lost. The current risk-reward ratio for entry into the market is not high. It is advisable to wait until the tariff issue becomes clear before the market direction can be seen.

European stock markets developed individually, with UK and German stocks rising 0.69% and 0.83% respectively, and French stocks falling 0.02%.

The European Union said it has agreed to accelerate negotiations with the United States to avoid a transatlantic trade war. Coupled with the decline in global bond yields and strong consumer confidence data, U.S. stocks rose significantly after the holiday on Tuesday. The Dow Jones Industrial Average opened 245 points higher and the increase once expanded to 747 points, reaching a high of 42,350 points. All three major indexes closed close to their all-day highs, with the S&P 500 and Nasdaq both rising by more than 2%.

At the close of U.S. stocks, the Dow Jones Industrial Average rose 740 points, or 1.78%, to 42,343 points; the S&P 500 rose 118 points, or 2.05%, to 5,921 points; and the Nasdaq rose 461 points, or 2.47%, to 19,199 points.

The U.S. dollar index rebounded 0.51% to 99.62, the euro fell 0.57% to $1.1324, and the yen fell 1.13% to 144.46 per dollar. Bitcoin once rose 1.06% to a high of $110,776.