Investment 16/6/2025

Tensions in the Middle East escalated. The Hang Seng Index opened 75 points lower at 23,959 points, then rose 64 points to 24,100 points. Selling pressure intensified afterwards, and the Hang Seng Index fell 260 points to 23,774 points. The full-day drop was 142 points or 0.59% to 23,892 points; the China Enterprises Index fell 74 points or 0.85% to 8,655 points; the Technology Index fell 91 points or 1.71% to 5,239 points. The main board turnover was HK$294.2 billion.

The market originally had expectations for the Sino-US trade negotiations, but the tariff rate on China remained at 55%, making it difficult for Hong Kong stocks to be hyped up by good news. The Hang Seng Index once rose above 23,917 points last week, and the market turned to wait-and-see, forming a narrow tug-of-war situation. The market closed below it for the whole week. The weekly candlestick showed a "shooting star". If the big candlestick falls this week, it will confirm the negative signal. In the short term, the Hang Seng Index faces greater resistance at 24,500 points, while the 50-day moving average (22,744) has greater support. On the Bollinger Channel of the Hang Seng Index monthly line, it has fallen back after crossing the axis in the past few months, reflecting that the resistance is also very large. In addition, the quarterly performance of heavyweight technology stocks is not outstanding, which makes it difficult to drive a big rise in the index.

European stock markets are under pressure, with British, French and German stocks closing down 0.39%, 1.04% and 1.07% respectively.

Tensions in the Middle East are rapidly escalating, and U.S. stocks were sold off on Friday. After the Dow Jones opened 388 points lower, the decline in the late stage expanded to 886 points, reaching a low of 42,081 points; the S&P 500 fell 1.36%, and the Nasdaq fell 1.5% at one point.

At the close of the U.S. stock market, the Dow Jones Industrial Average fell 769 points, or 1.79%, to 42,197 points; the S&P 500 fell 68 points, or 1.13%, to 5,976 points; and the Nasdaq Composite Index fell 256 points, or 1.3%, to 19,406 points. Last week, the Dow Jones Industrial Average fell 1.3%, the S&P 500 fell 0.4%, and the Nasdaq fell 0.6%.

The U.S. dollar index rose as much as 0.68% to 98.586. The Japanese yen rose first and then softened, falling 0.69% at one point to 144.48 per dollar. Bitcoin was sold off along with other risk assets, falling 3.04% to $102,785.