Investment 17/6/2026

The Hang Seng Index opened 16 points lower at 24,826, then fell as much as 463 points to 24,378, closing down 348 points or 1.4% at 24,493. The Technology Index fell 106 points or 2.24% to 4,658. Total market turnover was HK$249.8 billion.

Despite the signing of a ceasefire memorandum of understanding between the US and Iran, Hong Kong stocks fell instead of rising, as mainland retail sales and fixed asset investment were weaker than expected. The Hang Seng Index not only failed to break through the downward trendline resistance level of 25,200 points, but also fell below the support level of 24,700 points. This reflects a very pessimistic outlook, and the possibility of testing 22,986 points cannot be ruled out.

The framework agreement reached between the US and Iran to reopen the Strait of Hormuz is indeed a positive factor, as lower oil prices reduce inflationary pressures. However, the previous one or two trading days had already boosted Asian stock markets and the Hang Seng Index. The good news had already been priced in, and yesterday the market shifted to a "sell the news" approach, focusing instead on local and Chinese fundamentals. The decline in oil prices was a positive factor, but it couldn't completely offset profit-taking and the pressure from data uncertainty. Yesterday's drop in Hong Kong stocks was more of a technical correction and caution regarding the outlook for Chinese economic data. Hong Kong stocks are highly influenced by the Chinese economy and global risk appetite; if the data is positive or further stimulus policies are introduced, a rebound is possible; conversely, continued pressure is expected. Investors need to pay attention to the progress of China's economic recovery and the global interest rate environment.

European stocks performed well, with the UK, French, and German stocks rising 0.61%, 0.75%, and 0.07% respectively.

Market expectations of easing geopolitical tensions in the Middle East, continued plunge in international oil prices, and falling bond yields propelled the Dow Jones Industrial Average to a new record high on Tuesday. After opening 41 points higher, the Dow Jones extended its gains to a maximum of 519 points, reaching a high of 52,190 points, and also closing at a record high, but failed to hold the 52,000 mark. The S&P 500 fluctuated, falling as much as 0.6%; the Nasdaq, dominated by technology stocks, once fell as much as 1.18%.

At the close of trading on the US stock market, the Dow Jones Industrial Average rose 328 points, or 0.64%, to 51,999; the S&P 500 fell 42 points, or 0.57%, to 7,511; and the Nasdaq Composite dropped 307 points, or 1.15%, to 26,376.

The US dollar index rose as much as 0.16% to a high of 99.791 before slightly declining; the euro rose as much as 0.28% to $1.1623; the Bank of Japan raised interest rates by 0.25% as expected, and the yen fell as much as 0.09% to 160.49 against the dollar. Bitcoin retreated as much as 1.79% to $65,300. Spot gold prices rose as much as 1.06%, reaching a high of $4,354.9 per ounce.