Investment 1/12/2025

The Hang Seng Index opened 65 points higher at 26,011 before retreating, falling as much as 138 points to 25,807, before closing down 87 points or 0.33% at 25,858. The Tech Index rose 1 point or 0.01% to 5,599. Main board turnover was HK$146.2 billion.

For the week, the Hang Seng Index rose 638 points or 2.53%. In November, it fell 47 points or 0.18%.

Since October, the market has shown a pattern of rising first and then falling for two consecutive months. The Hang Seng Index remains below its 50-day and 20-day moving averages, technically continuing its mid-term correction. In the short term, there may not be a clear direction, and it will continue to fluctuate within a high range. Resistance is around 27,000 points, and support is at 25,100 points. Since September, it has been fluctuating within this 2,000-point range, and there are currently no major factors that could trigger a market breakout. A US interest rate cut in December is highly likely due to weakening retail and employment data, but these positive factors have already been priced in. However, overall market sentiment remains positive, and the significantly strengthened yuan is supporting Chinese stocks.

European stocks were stable, with UK, French, and German stocks rising 0.27%, 0.291%, and 0.29% respectively.

On Friday, the day after Thanksgiving, US stocks only traded for half a day and showed significant gains. A technical glitch in the CME Group system temporarily suspended futures and options trading, affecting stock, currency, bond, and commodity markets, sparking widespread dissatisfaction among market participants. The Dow Jones Industrial Average opened 55 points higher and extended its gains to as much as 323 points near the close, reaching a high of 47,750. The S&P 500 rose as much as 0.56%, while the tech-heavy Nasdaq Composite rose as much as 0.65%. Former TSMC Senior Vice President of R&D, Roland Lo, was accused of stealing trade secrets to join Intel, causing Intel's stock price to surge 10.2%.

U.S. stocks closed with the Dow Jones Industrial Average at 47,716, up 289 points or 0.61%; the S&P 500 rose 0.54% to 6,849; and the Nasdaq Composite gained 0.65% to 23,365, marking its fifth consecutive day of gains. For the week, the Dow rose 2.3%, the S&P 500 gained 3.2%, and the Nasdaq rebounded 4.2%. For November, the Dow retreated 0.4%, the S&P 500 fell 0.3%, and the Nasdaq declined 2.2%.

The U.S. dollar index rose as much as 0.28% to 99.816 before retreating. Germany's preliminary November inflation reading accelerated to 2.6%, exceeding the expected 2.4% and reaching a nine-month high. The euro fell as much as 0.37% to $1.1553 before stabilizing. The yen rose 0.21% to 155.98 against the dollar. Canada's economy rebounded sharply in the third quarter at an annualized rate of 2.6%, reversing a 1.8% decline in the second quarter. The Canadian dollar rose 0.66% to 71.75 US cents. Bitcoin rose as much as 1.72% to $92,979 before falling more than 1%. Spot gold rebounded by more than 1%, and silver prices hit a new high.