Investment 11/12/2025
The Hang Seng Index opened 1 point higher at 25,435, then fluctuated, falling as much as 176 points to 25,257 before recovering in the afternoon to close at its intraday high of 25,540, up 106 points or 0.41%. The Technology Index rose 26 points or 0.47% to 5,581. Main board turnover was HK$193.3 billion.
HSBC Holdings rose 2%, driven by a combination of factors including market confidence in HSBC's internal reforms and positive analyst assessments. The target price is HK$138.
The Hang Seng Index has been declining recently, with turnover exceeding HK$200 billion, reflecting heavy selling pressure. Unless the Hang Seng Index can quickly recover its 50-DMA (26,134), the outlook is not optimistic. Investors should be cautious, lock in profits, protect principal, and avoid assuming that funds will engage in year-end window dressing.
European stocks traded mixed, with the UK FTSE 100 rising 0.14%, while French and German stocks fell 0.37% and 0.13% respectively.
The US Federal Reserve announced its interest rate decision at 3:00 AM Hong Kong time on Thursday, cutting interest rates for the third consecutive time by 0.25 percentage points, lowering the target range for the federal funds rate to between 3.5% and 3.75%, to prevent a sharp deterioration in the job market. The post-meeting statement indicated that the Fed would purchase $40 billion in Treasury bonds over the next 30 days. Chairman Powell told reporters after the meeting that the bond-buying program is likely to remain at a high level in the coming months, and added that if the Trump administration does not implement new tariffs, commodity inflation may peak in the first quarter of next year.
Ahead of the interest rate decision, U.S. stocks traded mixed on Wednesday. The Dow Jones Industrial Average opened 13 points higher, then fell as much as 97 points before rebounding more than 200 points. After the rate decision was released, the Dow's gains widened to over 300 points. Following Powell's remarks, the Dow further extended its gains, jumping as much as 637 points to a high of 48,197, with all three major indices approaching record highs. The S&P 500 briefly turned positive, rising 0.88%. The Nasdaq Composite fell as much as 0.6%, but rose as much as 0.54% after the rate decision.
At the close, the Dow Jones Industrial Average rose 497 points, or 1.05%, to 48,057; the S&P 500 rebounded 46 points, or 0.68%, to 6,886; and the Nasdaq Composite gained 77 points, or 0.33%, to 23,654.
The US dollar index fell as much as 0.63% to 98.59, while the yen rose 0.69% to 155.8 against the dollar; the euro rose 0.66% to $1.1703. Bitcoin fell 2.7% to $91,773.
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