Daily Investment Strategy
Hang Seng Index fell 125 points on Wednesday
The Hang Seng Index closed at 17,108 points for the day, fell 125 points or 0.7%. The Hang Seng Technology Index closed flat at 3,450 points The HSCEI Index fell 43 points, or 0.7%, to 5,982 points. The market turnover was HK$105.7billion.
S&P 500 rides Nvidia-led rally to close higher
The S&P 500 ended lower on Wednesday as Nvidia led gains in technology stocks, offsetting declining bets on a two-digit interest rate cut next week, after data showed core inflation edged up slightly mom last month. The S&P 500 rose 0.5%, the tech-heavy Nasdaq rose 2.1%, and the Dow Jones Industrial Average fell 92 points, or 0.2%. Nvidia shares rose more than 8% after Semafor reported on Wednesday, citing sources, that the U.S. government is considering whether to lift a ban that allows the chipmaker to export advanced chips to Saudi Arabia. The surge in Nvidia shares pushed up other chip stocks as well as broader technology stocks. Bank of America shares fell 0.7% as Warren Buffett's Berkshire Hathaway sold more Bank of America shares, reducing its stake to 11%. Video game retailer GameStop's shares fell 12% after the company announced quarterly earnings, with revenue falling 31%.
Inflation data dents 50-basis point Fed cut bets
The U.S. CPI rose 0.2% month-on-month in August, unchanged from July, but the core data accelerated slightly, which may weaken the Fed's chances of a more aggressive interest rate cut at the upcoming policy meeting. Core consumer prices, which exclude volatile items such as food and fuel, edged up 0.3% from the previous month, faster than expectations of 0.2%. Compared with the same period last year, the figure was 3.2%, in line with expectations and unchanged from July.
Hong Kong Stock Connect had a net outflow of HK5.90bn on Wednesday of which Alibaba (9988) had the largest net inflow, reaching HK$3.12bn; followed by CNOON (883). Tracker Fund (2800) recorded the largest net outflow at HK$5.57bn, followed by HSCEI ETF (28283690).
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