Investment 21/10/2025

The Hang Seng Index opened 637 points higher at 25,884, extending its gains to 665 points at one point, reaching a high of 25,912. The index rose 611 points, or 2.42%, to 25,858 for the day. The Tech Index rose 172 points, or 3%, to 5,933. Main Board turnover reached HK$239.1 billion.

Investors' anticipation for a new round of trade negotiations between China and the United States, coupled with a reduction in credit risk for US banks, boosted Hong Kong stocks significantly yesterday. However, the Hang Seng Index remained capped by its 50-DMA (25,887) at the close. Barring any significant negative news, the Hang Seng Index could return to 26,200 points today. If it can hold above this level, it could challenge the 27,000 mark. However, if it falls below the 100-DMA (25,103), a significant correction is possible. The market continues to monitor the development of Sino-US relations, the outcome of the US interest rate meeting, and the upcoming important meetings in mainland China.

European stock markets rose across the board, with UK, French, and German stocks rising 0.52%, 0.39%, and 1.8%, respectively.

With the US government shutdown likely to end this week, market focus has shifted to US corporate earnings. US stocks rallied sharply on Monday. The Dow Jones Industrial Average opened 122 points higher, extending its gains to as much as 568 points, reaching a high of 46,759. The S&P 500 and Nasdaq Composite also closed near their highs for the day, with all three major indexes rising by more than 1%.

At the close of trading, the Dow Jones Industrial Average surged 515 points, or 1.12%, to 46,706; the S&P 500 rose 71 points, or 1.07%, to 6,735; and the Nasdaq rose 310 points, or 1.37%, to 22,990.

The US dollar index rose as much as 0.24% to 98.67, while the euro fell 0.14% to $1.1639 and the yen fell 0.39% to 151.2 per dollar. Bitcoin rebounded another 2.57% to $111,707.

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