Daily Investment Strategy
Hang Seng Index rose 753 points on Tuesday
The Hang Seng Index closed at 19,000 points for the day, rose 753 points or 4.1%. The Hang Seng Technology Index reported at 3,915 points, up 217 points or 5.9%. The HSCEI Index rose 325 points, or 5.1%, to 6,714 points. The market turnover was HK$242.3billion.
S&P 500 rises to record high
The S&P 500 rose to new highs on Tuesday as Nvidia shares surged and largely shrugged off weak consumer sentiment. The S&P Market Index rose 0.25% to 5,732.93. The Dow Jones Industrial Average rose 83.57 points, or 0.20%, to close at 42,208.22 points. Both major stock indexes hit record intraday highs and closed at record highs. The Nasdaq rose 0.56% to close at 18,074.52 points. Nvidia shares rose nearly 4% after a regulatory filing showed Chief Executive Officer Jensen Huang temporarily ended a sell-off in the stock. Chinese stocks outperformed on Tuesday as the Chinese government introduced measures to stimulate economic growth. Shares of Alibaba and JD.com, both listed in the United States, rose 7.9% and 13.9% respectively. Industrial stock Caterpillar rose nearly 4%. Visa shares fell more than 5% as the U.S. Department of Justice filed an antitrust lawsuit against the payments company, accusing some of its financial card business of being anticompetitive. Deere & Company shares Still up 0.5%, even as Republican presidential candidate and former President Trump on Monday threatened the agricultural manufacturer with "200% tariffs" if it moves some production to factories in Mexico.
Consumer confidence hits three-year low
The Conference Board's consumer confidence index fell to 98.7 from 105.6 in August, the largest one month decline in three years. Concerns about employment and inflation are consumers' top concerns, according to the survey. Meanwhile, A series of Fed officials and rate-setting committee members are set to speak this week, most notably Fed Chairman Jerome Powell on Thursday.
Hong Kong Stock Connect had a net outflow of HK4.30bn on Tuesday of which Alibaba (9988) had the largest net inflow, reaching HK$3.06bn; followed by Tracker Fund (2800). Tracker Fund (2800) recorded the largest net outflow at HK$3.6bn, followed by Meituan (3690).
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