Daily Investment Strategy
Hang Seng Index fell 577 points on Thursday
The Hang Seng Index fell 507 points or 3.0% to 18,533 on Wednesday. HSTECH fell 67 points or 1.7% to 3,948 and HSCEI fell 221 points or 3.4% to 6,268. Daily market turnover was HK$97.2bn.
Dow falls more than 300 points as hot jobs data sparks fears of Fed rate hike
The Dow ended lower on Thursday as data showing a continued hot job market sparked a slew of bets on further rate hikes by the Federal Reserve, sending U.S. Treasury yields soaring ahead of Friday's nonfarm payrolls report. The Dow Jones Industrial Average fell 366.38 points, or 1.07%, to end at 33,922.26. The S&P 500 fell 0.79% to close at 4,411.59. The Nasdaq Composite fell 0.82% to 13,679.04. Thursday's session was the worst one-day performance for the Dow and S&P 500 since May. Consumer stocks were under pressure, dragging consumer shares lower, as homebuilders fell sharply as mortgage rates jumped to their highest level this year amid worries about demand. Big tech companies struggled to shrug off surging U.S. Treasury yields that made it more expensive to own a market-growth sector, but Microsoft Corp rose nearly 1%, boosted by optimism over the artificial intelligence wave. Meanwhile, Meta gave up early gains despite launching Twitter-rival app Threads.
Private sector adds 497,000 jobs in June
Private sector jobs rose by 497,000 in June, much higher than the 267,000 in May and higher than the 228,000 economists expected. The report overshadowed last week's data on a larger-than-expected increase in initial jobless claims and a weaker-than-expected increase in job openings in May, raising concerns that the Fed may follow its guidance to raise interest rates two more times. U.S. services sector activity rose more than expected in June, pointing to further economic strength. Traders are pricing in about a 92 percent chance of a rate hike at the Fed's meeting later this month, according to the CME Group's FedWatch tool.
Hong Kong Stock Connect had a net inflow of HK$3.2bn on Thursday, of which CCB (939) had the largest net inflow, reaching HK$0.29bn; followed by Meituan (3690). HKEX (388) recorded the largest net outflow at HK$0.38bn, followed by Li Ning (2331).
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