Daily Investment Strategy
Hang Seng Index fell 11 points on Monday
The Hang Seng Index closed at 18,247 points for the day, fell 11 points or 0.1%. The Hang Seng Technology Index reported at 3,698 points, fell 5 points or 0.2%. The HSCEI Index rose 7 points, or 0.1%, to 6,389 points. The market turnover was HK$124.28billion.
S&P 500 rises to new closing high on Monday
The S&P 500 climbed to a new closing high on Monday as traders looked to extend last week's gains after the Federal Reserve cut interest rates. The broader market index rose 0.28% to close at 5,718.57 points; the Dow Jones Industrial Average rose 61.29 points to close at 42,124.65 points, an increase of 0.15%. Both indexes closed at record levels. The Nasdaq rose 0.14% to 17,974.27 points. The move follows a good week on Wall Street, driven largely by the Federal Reserve's decision to cut interest rates by 50 basis points, its first rate cut in four years. Despite some volatility following the initial announcement, stocks rebounded in the days that followed. Investors analyzed the latest economic data on Monday, including a U.S. manufacturing PMI that fell to a 15-month low in August.
The PCE price index to be released this week
A series of Fed officials and rate-setting committee members are set to speak this week, most notably Fed Chairman Jerome Powell on Thursday. Chicago Fed President Goolsby said on Monday that he expects " many more rate cuts over the next year " as the central bank seeks a soft landing for the economy. The PCE price index - the Fed's preferred measure of inflation - is due out on Friday and is expected to provide more clues on interest rates.
Hong Kong Stock Connect had a net inflow of HK8.4bn on Monday of which Tracker Fund (2800) had the largest net inflow, reaching HK$3.93bn; followed by Alibaba (9988). Meituan (3690) recorded the largest net outflow at HK$0.8bn, followed by Tencent (700).
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