Investment 30/1/2026

Hong Kong stocks failed to hold the 28,000-point mark. The Hang Seng Index opened 199 points lower, falling as much as 215 points to 27,611 before rebounding to a high of 28,056, a more than 4.5-year high. It closed up 141 points, or 0.5%, at 27,968, marking its seventh consecutive day of gains. The Technology Index fell 59 points, or 1%, to 5,841. Main board turnover exceeded HK$331.9 billion.

Yesterday was the expiration date for January futures and options. Large bullish and bearish investors clashed over a better settlement price, with the bulls prevailing. A correction is expected after the futures settlement, potentially testing the 27,000-point level. With strong trading volume, the Hang Seng Index could challenge the 28,000-point resistance level, with support moving up to the 20-day moving average (26,758). 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 further, targeting 35,000 points.

Hong Kong stocks have continued their strong performance recently, benefiting from global investors' desire to increase their allocations outside of US stocks, as well as the depreciation of the US dollar, which has increased the attractiveness of Hong Kong stocks to overseas funds. Furthermore, with the corporate earnings season approaching, the market generally expects stable performance for companies in sectors such as finance and technology in the second half of last year, further attracting funds to explore and increase holdings in these areas.

As for European stock markets, British and French stocks rose by 0.17% and 0.06% respectively, while German stocks fell by 2.07%.

Renewed concerns about excessive spending by large tech companies on artificial intelligence (AI) led to mixed performance in U.S. stocks on Thursday. The Dow Jones Industrial Average opened 77 points lower, then rose as much as 277 points before reversing course and falling 418 points to a low of 48,597. The S&P 500 fell as much as 1.54%, while the tech-heavy Nasdaq Composite gave back as much as 2.62% before recovering most of its losses.

At the close, the Dow Jones Industrial Average rose 55 points, or 0.11%, to 49,071; the S&P 500 fell slightly by 9 points, or 0.13%, to 6,969; and the Nasdaq Composite fell 172 points, or 0.72%, to 23,685.

The U.S. dollar index fell as much as 0.45% to 96.016, the euro rose 0.36% to $1.1999, and the yen continued to strengthen, rising as much as 0.48% to 152.68 against the dollar. Bitcoin plunged 6.7% to $83,382. Spot gold prices climbed as much as 3.3% yesterday, breaking through the $5,500 per ounce mark to a high of $5,595.47, after a 4.6% surge on Wednesday, the biggest gain since March 2020.