Daily Investment Strategy
Hang Seng Index rose 354 points on Friday
The Hang Seng Index rose 354 points or 2.1% to 17,398 on Friday. HSTECH rose 93 points or 2.5% to 3,806 and HSCEI rose 119 points or 2.0% to 5,979. Daily market turnover was HK$91.4bn.
S&P 500 index fell into technical correction zone on Friday
Recession fears triggered a fresh round of selling that dragged the Dow lower on Friday and pushed the S&P 500 into correction territory. The Dow Jones Industrial Average fell 1%, or 337 points, while the Nasdaq rose 0.4%. The S&P 500 fell 0.4% to end in technical correction zone at 4,118.93, with technology stocks giving back some gains despite gains in shares of Amazon and Intel. Shares of technology giant Amazon rose more than 6% after the company reported third-quarter earnings that beat Wall Street expectations. Meanwhile, chipmaker Intel Corp rose more than 9% as the company drew praise from Wall Street for satisfactory third-quarter results and an increase in profit forecasts. Shares of Exxon Mobil and Chevron fell nearly 2% and 7% respectively after reporting disappointing quarterly results, dragging the entire energy sector lower. ExxonMobil's third-quarter revenue and profit fell short of Wall Street expectations, weighed down by weakness in its upstream operations, including its exploration and production stages. Meanwhile, Chevron reported lower-than-expected earnings due to lower margins at its refining operations.
Inflation continues to ease, but consumer spending rises more than expected
The core price consumer expenditure index, a measure of inflation closely watched by the Federal Reserve, slowed to an annual increase of 3.7%, in line with expectations, down from 3.9% in the previous month. While ongoing signs of slowing inflation will provide the Fed with further evidence that its restrictive monetary policy measures are having the desired effect, last month's stronger-than-expected pace of consumer spending could disrupt the Fed's policy decision. Consumer spending rose 0.7%, beating expectations for a 0.5% increase as households increased purchases of motor vehicles and traveled.
Hong Kong Stock Connect had a net inflow of HK$2.2bn on Thursday, of which Meituan (3690) had the largest net inflow, reaching HK$0.26bn; followed by SMIC (981). China Mobile (941) recorded the largest net outflow at HK$0.18bn, followed by CNOOC(883).
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