Daily Investment Strategy
Hang Seng Index rose 139 points on Monday
The Hang Seng Index closed at 17,569 points for the day, up 139 points or 0.8%. The Hang Seng Technology Index reported at 3,517 points, up 58 points or 1.7%. The HSCEI Index rose 63 points, or 1.0%, to 6,225 points. The market turnover was HK$94.4billion.
The S&P 500 and Nasdaq Composite Index rose for eight consecutive trading days
The S&P 500 climbed on Monday as worries about an economic recession continued to ease, the Federal Reserve will release minutes of its July meeting, and Fed Chairman Jerome Powell is expected to deliver keynote speeches at the Jackson Hole central bank symposium on Friday and provide clues to future monetary policy. The Dow Jones Industrial Average rose 236 points, or 0.6%, the S&P 500 rose 1%, and the Nasdaq Composite rose 1.4%. Advanced Micro Devices shares rose more than 4% after the company said it planned to acquire server maker ZT Systems for $4.9 billion to expand its artificial intelligence chip and hardware product portfolio. HP shares fell more than 3% as Morgan Stanley downgraded the PC maker to overweight from overweight on concerns that demand may slow in the second half of the year. Earnings season continues this week, with retailer Target and home improvement chain Lowe's expected to report this week.
Fed minutes and Jackson Hole meeting take center stage
Now, with hopes growing for an imminent rate cut, investors are looking for insight into where rates are headed. They will be watching Federal Reserve Chairman Jerome Powell's speech on Friday at the central bank’s symposium in Jackson Hole. Ahead of that, traders will parse the minutes from the Federal Reserve's most recent meeting on Wednesday. Powell's speech is expected to pave the way for a rate cut in September, with consensus currently betting on a 25 basis point cut.
Hong Kong Stock Connect had a net outflow of HK6.1bn on Monday of which China Mobile (941) had the largest net inflow, reaching HK$0.13bn; followed by CCB (939). Tracker Fund (2800) recorded the largest net outflow at HK$5.05bn, followed by CSOP HS TECH (3033).
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