Investment 21/1/2026

The Hang Seng Index opened 19 points lower at 26,544, then rebounded briefly to 26,638, a rise of 74 points before selling pressure returned, causing it to fall 200 points to 26,363. It closed down 76 points, or 0.28%, at 26,487, marking its fourth consecutive day of decline. The Technology Index fell 66 points, or 1.15%, to 5,683. Main board turnover was HK$237.7 billion.


US markets were closed for a holiday on Monday and resumed trading yesterday with a sharp decline. Large investors in Hong Kong stocks began attempting to break through the bottom of the upward channel on the Hang Seng Index's daily chart, and it is expected to break through the bottom of another upward channel today, namely the high of 26,264 reached on February 2nd. Currently, the Hang Seng Index lacks upward momentum and may break below the bottom of the sideways trading range of the past few months at 25,168.


The Hong Kong stock market outlook is weak, and a defensive strategy is recommended. In fact, the Hang Seng Index rose a total of 12,587 points from its intraday low of 14,794 points on January 22, 2024, to 27,381 points on October 2. If the Fibonacci retracement level is adjusted to 0.382, the Hang Seng Index could fall as low as 22,573 points.


European stock markets were under pressure across the board, with the UK, French, and German stock markets falling by 0.67%, 0.61%, and 1.03% respectively.


The escalating crisis between US President Trump and European countries over Greenland has brought the US-EU trade war to the brink. Coupled with a sharp rise in global bond yields, US stocks plunged on Tuesday after the holiday. The Dow Jones Industrial Average opened 354 points lower and continued its downward trend, falling as much as 931 points to a low of 48,428. The S&P 500 fell as much as 2.18%, and the Nasdaq Composite dropped as much as 2.55%. The VIX volatility index, commonly known as the "fear index," rose above 20 for the first time since November, surging over 32% to 20.99.


At the close, the Dow Jones Industrial Average was down 870 points, or 1.76%, at 48,488; the S&P 500 fell 143 points, or 2.06%, to 6,796; and the Nasdaq Composite dropped 561 points, or 2.39%, to 22,954.


The US dollar index once plunged 1.15% to 98.246, the euro rose 1.06% to $1.1771, and the yen gained 0.42% to 157.47 per dollar. Bitcoin once plummeted 4.06% to $89,234.

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