Daily Investment Strategy
Hang Seng Index rose 129 points on Friday
The Hang Seng Index opened 58 points higher, at 17,298 points, and rose 129 points, or 0.7%, to 17,369 points on Friday; the HSCEI Index rose 54 points, or 0.9%, to 6,071 points; the Hang Seng Technology Index rose 5 points, or 0.1%, to 3,480 points . The total daily turnover of the market was HK$88.88 billion.
his week the market focus shifts to the interest rate meeting
U.S. stocks closed higher on Friday. The Dow Jones index rose 297.01 points, or 0.72%, to 41393.78 points; the Nasdaq index rose 114.30 points, or 0.65%, to 17683.98 points; the S&P 500 index rose 30.26 points, or 0.54%, reported 5626.02 points. U.S. stocks performed strongly last week, with the Dow Jones Industrial Average rising 2.6%; the S&P 500 Index rising 4.02%; and the Nasdaq rising 5.95%. This week, the market focus shifts to the Federal Reserve's upcoming monetary policy meeting. There is an equal chance of cutting interest rates by 25 basis points or 50 basis points, based on FedWatch tool.
On Friday, the University of Michigan released its inflation expectations and consumer confidence index. Consumers expect 1Y inflation to be 2.7%, compared with 2.8% expected a month ago. This is the fourth consecutive month that short-term inflation expectations have fallen. They forecast annualized inflation of 3.1% over the next five to 10 years, up from 3% a month ago. In terms of consumer confidence index, the consumer confidence index rose to 69 from 67.9 in August, and the median expectation of economists surveyed was 68.5. Benefiting from the prospect of interest rate cuts and the mildest short-term inflation expectations since the end of 2020, the U.S. consumer confidence index rose to a four-month high in early September.
Fixed investment, industrial added value and social retail sales were all below expectations
In China, the National Bureau of Statistics released data on fixed investment, industrial added value and social retail sales. All three data were lower than market expectations and fell from the previous data. The detailed data also reflected that the economic situation is under great pressure. For example, the growth rate of private investment in fixed asset investment turned negative again by 0.2%; in retail sales of consumer goods, the growth rate was 1.9%, the second lowest growth rate in the past 12 months, reflecting weak consumption.
Hong Kong Stock Connect saw a net inflow of HK$240 million on Friday, of which Alibaba (9988) had the largest inflow, reaching HK$1.32 billion; followed by China Mobile (941). Tracker Fund (2800) recorded the largest net outflow of HK$770 million, followed by Meituan (3690).
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.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
