Investment 7/5/2025

After opening 71 points higher at 22,576 points after a long holiday, the Hang Seng Index fell 55 points to 22,449 points before regaining its upward momentum, rising 242 points to a high of 22,747 points. It rose 158 points or 0.7% to 22,662 points throughout the day, marking its fourth consecutive day of gains. The Technology Index fell 4 points or 0.08% to 5,239 points. The main board traded HK$213.3 billion .

The easing of Sino-US trade tensions and the strengthening of the Hong Kong dollar reflect the continued inflow of funds into the Hong Kong stock market. It is believed that the Hang Seng Index has the potential to rise further and test 23,500 points. The support below is at the 100-DMA (21,532).

European stock markets developed individually, with British stocks rising slightly by 0.01% after the holiday, while French and German stocks fell by 0.4% and 0.41% respectively.

The impact of the US tariff policy on US corporate performance emerged. US stocks came under pressure on Tuesday. After the Dow opened 218 points lower, the decline widened to 459 points, hitting a low of 40,759 points. Subsequently, US Treasury Secretary Bessan said that a trade agreement with Canada could be finalized as early as this week. In addition, India and the UK announced that they had reached a trade agreement, which significantly narrowed the decline of US stocks. The Dow fell to only 54 points, reaching a high of 41,164 points. The decline narrowed in the middle stage, with the S&P 500 falling as much as 1.14%, and the Nasdaq fell 1.41%. However, when Trump met with visiting Canadian Prime Minister Carney at the White House, he retracted his promise to reach a trade agreement, saying "we don't have to sign a deal." The news of the uncertain prospects for trade negotiations dragged the Dow Jones Industrial Average down again.

At the close of U.S. stocks, the Dow Jones Industrial Average fell 389 points, or 0.95%, to 40,829 points; the S&P 500 fell 43 points, or 0.77%, to 5,606 points; and the Nasdaq fell 154 points, or 0.87%, to 17,689 points.

The Federal Reserve began a two-day interest rate meeting on Tuesday. The U.S. 10-year bond yield turned from rising to falling, falling 3.9 basis points to 4.304%. The U.S. dollar index fell 0.66% to 99.17 at one point, the euro rose 0.58% to $1.1383, and the yen rose 0.93% to 142.36 per dollar.

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