Investment 28/7/2025

Hong Kong stocks retreated, ending a five-day rally. The Hang Seng Index opened 135 points or 0.53% lower, then fell more than 300 points to 25,355 points, and fell 278 points or 1.08% to 25,388 points for the day; the Technology Index fell 65 points or 1.13% to 5,677 points. The market turnover was HK$281.7 billion.

The market finally adjusted after rising for 5 consecutive days. The Hang Seng Index opened 136 points lower on Friday, and fell to the lowest point of the day at 25,355 points in the afternoon, down 312 points. It rebounded to 25,388 at the close, down 278 points. The Hang Seng Index had a low of 24,844 last week and a high of 25,735, a weekly increase of 562 points, breaking through the previous March top of 24,874 with a white candlestick, breaking the earlier sideways situation. But in the short term, Hong Kong stocks have been overbought for several days, and the adjustment of the Hang Seng Index is within expectations. The previous peak of 24,874 is expected to have solid support. After the adjustment is completed, it is expected to challenge the 25,800 to 26,000 area. The recent brisk trading in the market reflects the continuous inflow of funds into the Hong Kong stock market. However, the current price-earnings ratio of the Hang Seng Index is about 12 times, and the valuation is slightly high. We must beware of the reappearance of the rights issue wave, which will drag down the market atmosphere. Unless there are unexpected surprises during the August performance period, it will be difficult to rise sharply.

European stocks closed individually, with British and German stocks falling 0.2% and 0.32% respectively, and the French stock market rising 0.21%.

U.S. stocks performed well on Friday. After the Dow opened 63 points higher, the increase expanded to 250 points, reaching 44,944 points, only 129 points lower than the historical high of 45,073 points; the S&P 500 rose 0.51% to 6,395 points; the Nasdaq rose 0.48% to 21,159 points; the closing prices also hit record highs. Among them, the S&P 500 hit record highs in the last five trading days, and recorded 14 record highs this year; the Nasdaq also hit record highs four times last week and stood above 21,000 points, and recorded 15 record highs this year.

At the close of the U.S. stock market, the Dow Jones Industrial Average was at 44,901 points, rebounding 0.47% or 208 points; the S&P 500 rose 25 points or 0.4% to 6,388 points; and the Nasdaq rose 50 points or 0.24% to 21,108 points. Last week, the Dow gained 1.3%, the S&P rebounded 1.5%, and the Nasdaq climbed 1%.

The US dollar index rose as much as 0.54% to 97.91, and the Japanese yen fell 0.63% to 147.94 per dollar. The euro fell 0.39% to $1.1703. Bitcoin once fell 3.36% to $114,762.