Investment 29/1/2026

A weaker US dollar benefited risk assets, pushing Hong Kong stocks to a 4.5-year high. The Hang Seng Index opened 198 points higher at 27,325 and gradually extended its gains, closing at 27,826, a high for the day, up 699 points or 2.58%, marking its sixth consecutive day of gains. The Technology Index rose 145 points or 2.52% to 5,900. Main board turnover reached HK$361.5 billion.

The Hang Seng Index quickly broke through the high of 27,381 points reached on October 2nd last year, indicating that after consolidation, the market could begin a new upward wave, aiming for a new high for the year, with the first target at 29,617 points. Trading in Hong Kong stocks for January will end tomorrow. It is almost certain that the Hang Seng Index will ultimately record a "large bullish candlestick" on the monthly chart; however, it is reasonable to predict that the upward momentum of the Hang Seng Index will begin to weaken, and there is a high probability of a medium-term correction. The long-term upward trend remains unchanged. As long as the mid-term correction is not too significant, the Hang Seng Index will hold above the 250-day moving average (24,567), a key level separating bull and bear markets, and still has the potential to rise to higher levels, targeting 35,000 points.

European stock markets were under pressure, with the UK, French, and German stock markets falling by 0.52%, 1.06%, and 0.29%, respectively.

Ahead of the Federal Reserve's interest rate decision, US stocks rallied on Wednesday, led by semiconductor stocks, with the S&P 500 breaking new highs and surpassing the 7,000-point mark for the first time. The Fed kept interest rates unchanged, as expected, and raised its economic growth forecast, indicating that economic activity has been steadily expanding. Compared to inflation, the Fed reduced its concerns about the labor market, stating that the unemployment rate has stabilized to some extent, but job growth remains low. Following the rate decision, the S&P 500 fluctuated slightly lower, while the Dow Jones and Nasdaq closed relatively stable. The Dow Jones Industrial Average opened 21 points higher and rose as much as 146 points to a high of 49,150, before falling as much as 101 points to 48,901. The S&P 500 rose as much as 0.34% to 7,002, while the tech-heavy Nasdaq Composite rose as much as 0.72%.

At the close, the Dow Jones Industrial Average rose 12 points, or 0.02%, to 49,015; the S&P 500 fell slightly by 0.01% to 6,978; and the Nasdaq Composite rose 40 points, or 0.17%, to 23,857.

The US dollar index reversed a four-day losing streak, rising as much as 0.59% to 96.79. The euro fell 1.2% to $1.1898, and the yen dropped 1.22% to 154.05 per dollar. Bitcoin fell as much as 1.78% to $88,776. US President Trump stated he was not worried about the dollar's decline and warned of a possible attack on Iran, which spurred spot gold prices to approach $5,400 per ounce, rising as much as 4.15% to $5,396.6.