Daily Investment Strategy
Hang Seng Index rose 217 points on Monday
HSI rose 217 pts or 1.3% to 17,238. HSTI rose 22 pts or 0.7% to 3,466. HSCEI rose 69 pts or 1.2% to 6,080. Market turnover reached $84.7 billion.
The S&P 500 and Nasdaq rose slightly on Monday as investors prepared for this week's earnings reports from major technology companies.
The S&P 500 closed higher on Monday, with more tech stock earnings due to be released this week and a Federal Reserve meeting scheduled for this week. The S&P 500 rose 0.1%, the Nasdaq rose 0.1%, and the Dow Jones Industrial Average fell 49 points, or 0.1%. Some major Wall Street companies will also announce earnings this week, including Microsoft, Apple, Meta Platform, Advanced Micro Devices and Amazon. McDonald's shares rose nearly 4% despite reporting an unexpected decline in global quarterly comparable sales. Some on Wall Street are optimistic that the fast-food chain's $5 meal deals, which were launched on Jun. 25, delivering improved results in the back half of the year. Tesla shares rose 5%, with Morgan Stanley naming the stock a top pick among U.S. auto stocks.
Fed meeting will provide forward guidance on rate cuts
The Federal Reserve will conclude its latest meeting on Wednesday and is widely expected to keep interest rates unchanged. The main factor pushing the FOMC closer to a rate cut was favorable inflation data in May and June. CME Fedwatch shows that the market expects the Federal Reserve to cut interest rates by 25 basis points in September. Meanwhile, the main economic data for the week will be non-farm payrolls due on Friday.
Hong Kong Stock Connect had a net inflow of HK0.74bn on Monday of which Tencent (700) had the largest net inflow, reaching HK$0.67bn; followed by CNOON (883). Tracker Fund (2800) recorded the largest net outflow at HK$1.16bn, followed by CCB (939).
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