Daily Investment Strategy
Hang Seng Index rose 173 points on Tuesday
The Hang Seng Index rose 173 points or 1.1% to 16,374 on Tuesday. HSTECH rose 63 points or 1.7% to 3,730 and HSCEI rose 82 points or 1.5% to 5,614. Daily market turnover was HK$86.62bn.
S&P 500 hits highest level since January 2022
The S&P 500 rose 0.46% to close at 4,643.70 points, and the Dow Jones Industrial Average rose 173.01 points to close at 36,577.94 points, an increase of 0.48%. The Nasdaq rose 0.70% to 14,533.40 points. On Tuesday, all three major stock indexes hit new intraday 52-week highs, and the S&P 500 hit its highest intraday level since January 2022. The tech-heavy Nasdaq and Dow hit their highest intraday levels since April and January respectively. Shares of cloud computing company Oracle fell more than 12% after the company reported quarterly revenue that fell short of Wall Street expectations due to slow growth in cloud computing. Hasbro shares fell more than 1% after the company said it would cut about 20% of its workforce due to continued pressure from declining toy sales. The CPI released by the U.S. Department of Labor in November unexpectedly increased slightly from the previous month, but was slightly lower than the same period last year. The U.S. Federal Open Market Committee (FOMC) held a two-day monetary policy meeting, and it is expected that the meeting will ultimately decide to maintain the federal funds target interest rate at 5.25%-5.50%. The Fed will also release summary economic projections and dot-plots, data that should shed light on the Fed's future path.
Inflation continues to cool, keeping U.S. Treasury yields in check
Data released by the U.S. Bureau of Labor Statistics on Tuesday showed that the annual increase in the overall consumer price index (CPI) edged down to 3.1% last month, down from 3.2% in October. The index rose slightly by 0.1% month-on-month. Economists' previous forecasts were 3.1% and 0.0% respectively. Core data excluding food and energy increased by 4.0% year-on-year, unchanged from the previous month. On a monthly basis, the increase was 0.3%, slightly higher than October's 0.2%. Both matched estimates.
Hong Kong Stock Connect had a net outflow of HK$2.69bn on Tuesday, of which Sunac (1918) had the largest net inflow, reaching HK$0.30bn; followed by Meituan (3690). Tracker Fund (2800) recorded the largest net outflow at HK$3.12bn, followed by HSCEI ETF (2828).
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