Daily Investment Strategy
Hang Seng Index rose 128 points on Thursday
The Hang Seng Index closed at 19,129 points for the day, rose 128 points or 0.7%. The Hang Seng Technology Index rose 8 points, or 0.2%, to 3,924 points. The HSCEI Index rose 51 points, or 0.8%, to 6,765 points. The market turnover was HK$254.8billion.
S&P 500 retreats from all-time highs
The S&P 500 fell on Wednesday, pausing its recent gains as investors awaited further catalysts such as key inflation data due later this week. The Dow Jones Industrial Average fell 293 points, or 0.7%, the S&P 500 fell 0.2%, and the Nasdaq Composite rose 0.1%. Nvidia shares rose 2%, extending Tuesday's gains amid reports that the company's CEO, Jensen Huang, has completed a sell-off following reports that he sold more than $700 million worth of Nvidia stock. Meta Platform shares rose 0.9% after the company launched its first augmented reality glasses at its annual connect event and unveiled a slew of updated products. The tech giant is making a big push to integrate artificial intelligence capabilities into various platforms including Facebook and Instagram. Flutter Entertainment's stock price rose 5%. Its parent company FanDuel said it planned to repurchase up to US$5 billion in shares and announced a long-term growth forecast, striving to double profits in 2027. Stitch Fix issued lower-than-expected performance guidance and did not expect revenue growth to return until 2026. The company's stock price plummeted 39%.
Powell is set to speak
A series of Fed officials and rate-setting committee members are set to speak this week, most notably Fed Chairman Jerome Powell on Thursday. The Federal Reserve cut interest rates by 50bps last week, and the market expects that interest rates will be cut by another 75bps by the end of the year. 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 outflow of HK5.3bn on Wednesday of which Alibaba (9988) had the largest net inflow, reaching HK$2.62bn; followed by Wuxi Bio (2269). Tencent (700) recorded the largest net outflow at HK$2.0bn, followed by Meituan (3690).
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