Investment 10/3/2026

Hong Kong stocks were sold off amid ongoing Middle East conflict, but losses narrowed in the afternoon, with the Hang Seng Index recovering the 25,000 level. The Hang Seng Index opened 681 points lower at 25,075, falling as much as 851 points to a low of 24,906 before finding support. It closed down 348 points, or 1.35%, at 25,408; the Technology Index fell 5 points, or 0.11%, to 4,941. Main board turnover increased to HK$392.3 billion.

The Middle East conflict continues, and soaring oil prices have fueled investor concerns about inflationary pressures, potentially leading to a shift in interest rate policy. The Hang Seng Index's earlier drop below 26,300 had formed a head and shoulders pattern, a bearish signal. Measured declines suggest a potential test of the 24,600 level, where support is relatively strong. Fortunately, despite yesterday's decline, it held above the 250-day moving average (25,035), a key level for bull and bear markets, indicating potential for further gains.

European stocks fell across the board, with British and German stocks declining by 0.34% and 0.77% respectively, while French stocks slipped 0.98%.

Increasing market concerns that the US-Iran conflict could escalate into a protracted war continued to hinder Middle Eastern energy exports, causing international oil prices to surge to nearly $120 per barrel, a news that rippled through global stock markets. Subsequently, US President Trump hinted to the media that the war with Iran might be nearing its end, causing oil prices to plummet and US stocks to reverse course and rise. The Dow Jones Industrial Average opened 130 points lower on Monday and gradually declined, with losses widening to as much as 886 points, reaching a low of 46,615 points. It later rebounded by 374 points, reaching a high of 47,876 points. The S&P 500 fell as much as 1.54%, while the technology-heavy Nasdaq Composite Index slipped as much as 1.45%. The VIX volatility index, commonly known as the "fear index," surged 19.7% to 35.3, before plunging as much as 16% to below 25 at the close.

U.S. stocks closed with the Dow Jones Industrial Average up 239 points, or 0.5%, to 47,740; the S&P 500 rebounded 55 points, or 0.83%, to 6,795; and the Nasdaq Composite rose 308 points, or 1.38%, to 22,695.

The U.S. dollar index approached the 100 mark, rising as much as 0.72% to 99.695 before turning slightly lower. The euro fell as much as 0.96% to $1.1507 before stabilizing. The yen fell 0.71% to 158.9 against the dollar before remaining largely unchanged. Bitcoin initially fell to $65,639 before rebounding as much as 5.8% to a high of $69,474. A strong dollar and concerns about interest rate hikes offset safe-haven demand, causing spot gold prices to fall as much as 3.02% to $5,015.31 per ounce before significantly narrowing its losses.