Daily Investment Strategy
Hang Seng Index fell 51 points on Tuesday
The Hang Seng Index closed at 16,647 points for the day, down 51 points or 0.3%. The Hang Seng Technology Index reported at 3,342 points, down 3 points or 0.1%. The HSCEI Index fell 24 points, or 0.4%, to 5,852 points. The market turnover was HK$96.4billion.
Dow closes nearly 300 points higher as investors buy dips
U.S. stocks jumped on Tuesday, recouping some of the losses from the previous three sessions, as the market temporarily shrugged off worries about an economic recession, and Japanese stocks also rebounded. The Dow Jones Industrial Average rose 294.39 points to close at 38997.66 points, an increase of 0.76%. The S&P 500 index rose 1.04% to close at 5240.03 points. The Nasdaq index, which is dominated by technology stocks, rose 1.03% to close at 16366.85 points. The major averages ended a three-day losing streak. All 11 sectors of the broader market index rose. Several large technology stocks also rebounded after sharp pullbacks on Monday. Nvidia rose 3.8% and Meta Platform rose 3.9%. A rebound in Japanese stocks boosted sentiment. The Nikkei 225 Index posted its largest one-day gain since October 2008, soaring 10.2%. The day before, Nikkei experienced its worst trading day since 1987, falling 12.4%. Uber Technologies shares rose 11% after the company beat second-quarter revenue and core profit estimates on steady demand for its ride-sharing and food delivery services. Caterpillar shares rose 3% after the industrial giant reported adjusted quarterly profit growth, boosted by strong demand for its larger excavators and other construction equipment as U.S. infrastructure spending increases. Software services provider Palantir Technologies raised its annual revenue and profit forecasts for the second time this year, sending the company's shares up 10%. Electric vehicle manufacturer Lucid Group reported better-than-expected second-quarter revenue and announced that its largest shareholder, Saudi Arabia's Public Investment Fund (PIF), would invest up to $1.5 billion in cash, making it a winner in the profit-making phase. Its shares rose 3%.
JPMorgan says carry trade unwind only half complete
According to JPMorgan Chase & Co., the recent unwinding of carry trades still has more room to run, as the yen remains one of the most undervalued currencies. "We are not done by any stretch," said Arindam Sandilya, co-head of global FX strategy at JPMorgan. "The carry trade unwind, at least within the speculative investing community, is somewhere between 50%-60% complete." Major investment firms have indicated that more positions are expected to be unwound in the coming days, which could potentially have a significant impact on other assets.
Hong Kong Stock Connect had a net inflow of HK5.98bn on Tuesday of which Tracker Fund (2800) had the largest net inflow, reaching HK$2.21bn; followed by Tencent (700). HSBC (5) recorded the largest net outflow at HK$0.21bn, followed by China Mobile (941).
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