Investment 24/6/2026

The Hang Seng Index opened 31 points higher at 23,800, then fluctuated downwards, falling as much as 516 points to 23,252, a new one-year low, before closing down 432 points or 1.81% at 23,336. The Technology Index fell 150 points or 3.3% to 4,399. Total market turnover was HK$334.3 billion.

Hong Kong stocks have fallen for five consecutive trading days, with the Hang Seng Index having just closed above 23,300 yesterday. Hong Kong stocks have long lagged significantly behind US stocks, and now they are even failing to catch up with mainland Chinese stocks, a performance that has disappointed and even frustrated many investors. However, a slight rebound or a move to around the flat line is expected today, but a significant one-sided rise is unlikely, as there is significant technical resistance above 24,000. In the short term, the market remains in a continuation of the "May slump, June crash" correction, with a high probability of repeatedly testing the expected low of 22,986. A wait-and-see approach is advisable in the short term; avoid chasing highs. A rebound could present an opportunity to reduce holdings or rebalance portfolios in defensive sectors (such as high-dividend stocks and utilities). In the long term, if geopolitical risks continue to ease and mainland policies provide support, Hong Kong stocks still have room for a rebound, but current volatility remains high.

European stock markets declined across the board, with the UK, French, and German markets falling 0.09%, 0.71%, and 0.98% respectively.

The US Federal Reserve's hawkish shift in monetary policy exacerbated investor concerns about overvalued artificial intelligence (AI) related stocks. US stocks were sold off on Tuesday. The Dow Jones Industrial Average opened slightly higher by 22 points but then plunged as much as 410 points, hitting a low of 51,301; the S&P 500 fell as much as 1.68%; and the Nasdaq 100, led by heavyweight tech companies, closed down 3.3%. The VIX volatility index, commonly known as the "fear index," surged as much as 18.9% to 20.54.

U.S. stocks closed lower. The Dow Jones Industrial Average fell 45 points, or 0.09%, to 51,666; the S&P 500 dropped 107 points, or 1.44%, to 7,365; and the Nasdaq Composite declined 579 points, or 2.21%, to 25,587.

The U.S. dollar index rose as much as 0.41% to 101.43, while the yen rebounded as much as 0.18% to 161.28 against the dollar. The euro fell to its lowest level since August last year, dropping 0.46% to $1.1376. The pound fell 0.52% to $1.3181. Bitcoin fell as much as 3.88% to a two-week low of $61,876. Spot gold prices fell as much as 2.4%, hitting a low of $4,090.99 per ounce.