Daily Investment Strategy
Hang Seng Index rose 186 points on Monday
The Hang Seng Index closed at 17,798 points for the day, up 186 points or 1.1%. The Hang Seng Technology Index reported at 3,502 points, up 34 points or 1.0%. The HSCEI Index rose 59 points, or 1.0%, to 6,278 points. The market turnover was HK$83.5billion.
Dow closes at record high, cyclical stocks outperform amid tech rotation
The Dow closed at a record high on Monday as cyclical stocks including financials regained favor and technology stocks began to retreat ahead of widespread expectations for a Federal Reserve interest rate cut next month. The Dow Jones Industrial Average rose 65 points, or 0.16%, to a record 41,240.52 points. The Nasdaq closed down 0.8% and the S&P 500 fell 0.3%. Technology stocks got off to a bad start this week as investors exited growth sectors, with Nvidia falling 1% ahead of this week's quarterly results. Apple shares were slightly higher as anticipation grew for the iPhone maker's upcoming product launch event on September 9, where many expect it to unveil new iPhones and Apple Watches. Meanwhile, Micron Technology shares fell more than 3%, with Needham lowering his price target on the stock to $140 from $150, citing concerns about demand. In terms of Chinese technology stocks, PDD Holdings reported second-quarter revenue that was lower than analysts' expectations, and the company's stock price fell 28%. The decline in technology stocks came as cyclical sectors including financials rebounded on expectations that such stocks could benefit significantly from interest rate cuts. Financial stocks hit 52-week highs on Monday.
Both oil and gold prices went up
Oil prices rose on Monday, amid reports of a production halt in Libya and after Israel and Hezbollah traded a barrage of strikes across the Lebanon border. Meanwhile, gold prices also rose on Monday, closing in on its recent all-time high, driven by widespread expectations for lower interest rates in September following Federal Reserve Chairman Jerome Powell's dovish announcement, as well as risk aversion from geopolitical risks in the Middle East. need.
Hong Kong Stock Connect had a net outflow of HK0.04bn on Tuesday of which China Mobile (941) had the largest net inflow, reaching HK$0.11bn; followed by Sinopec (386). Tracker Fund (2800) recorded the largest net outflow at HK$0.33bn, followed by Tencent (700).
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