Daily Investment Strategy
Hang Seng Index rose 320 points on Thursday
The Hang Seng Index rose 320 points or 1.9% to 16,863 on Thursday. HSTECH rose 31 points or 0.9% to 3,582 and HSCEI rose 101 points or 1.7% to 5,905. Daily market turnover was HK$118.0bn.
Dow closes more than 250 points higher
The S&P 500 closed at a record high on Thursday as stocks continued to rise. The day before, the Federal Reserve continued to signal that it would cut interest rates three times this year. The Dow Jones Industrial Average rose 269.24 points to close at 39,781.37 points, an increase of 0.68%. The S&P 500 index rose 0.32% to close at 5,241.53 points, and the Nasdaq index edged up 0.20% to close at 16,401.84 points. On Thursday, the U.S. Department of Justice and 16 states filed a lawsuit against the technology giant Apple, accusing it of illegally monopolizing the smartphone market. Apple's stock price fell more than 4%. Shares of Micron Technology soared 14% to a record high after the chipmaker posted a surprise profit and forecast strong revenue for the current quarter as demand for its memory chips used in artificial intelligence computing surges. Reddit surged on its first day of trading on Thursday, closing up 47% that day and opening at $47, much higher than its IPO price of $35.
U.S. economic data continues to show strength
The prospect of rate cuts and the resilience of the U.S. economy boosted risk appetite after Federal Reserve officials maintained their forecast for three rate cuts this year. On the economic front, data continues to show a strong labor market. In the week ending March 16, the number of people applying for unemployment benefits for the first time in the United States was 210,000, down from the previous 212,000. The forecast is 215,000. At the same time, the US March S&P Global Manufacturing Purchasing Managers Index preview value was 52.5, higher than the previous 52.2. The predicted value is 51.7.
Hong Kong Stock Connect had a net inflow of HK4.7bn on Thursday, of which Tencent (700) had the largest net inflow, reaching HK$1.62bn; followed by BOC (3988). ICBC (1398) recorded the largest net outflow at HK$0.21bn, followed by CNOOC (883).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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