Daily Investment Strategy
Hang Seng Index rose 353 points on Thursday
The Hang Seng Index closed at 18,013 points for the day, rose 353 points or 2.0%. The Hang Seng Technology Index reported at 3,651 points, up 114 points or 3.3%. The HSCEI Index rose 129 points, or 2.1%, to 6,305 points. The market turnover was HK$148.7billion.
Technology stocks performed well, with the S&P 500 closing above 5,700 points for the first time
The S&P 500 closed above 5,700 for the first time on Thursday, with technology stocks leading the gains. The day before, the Federal Reserve slashed interest rates by half a percentage point, kicking off its easing cycle. The S&P 500 rose 1.7% to close at a record 5,715.61 points, the Dow Jones Industrial Average gained 532 points, or 1.3%, and the Nasdaq rose 2.5%. On Wednesday, the Federal Reserve decided to cut its benchmark interest rate by 50 basis points to a range of 4.75% to 5%. Large technology stocks including Meta Platform, Apple and Tesla led the market higher. Chip is also in a strong position, led by Nvidia and Intel Corp., the latter of which announced it has no intention of selling its majority stake in Mobileye. Stocks that benefit from lower interest rates to stimulate the economy also rose sharply on Thursday. Financial giant JPMorgan Chase rose 1.4%. Industrial stocks Caterpillar and Home Depot rose 5.1% and 1.7%, respectively.
Hopes of soft landing grow as rate cut cycle unfolds
The Federal Reserve's rate cut in September marked the beginning of an easing cycle, and rates are likely to fall further in the coming months. Federal Reserve Chairman Powell said earlier that the labor market is in a "solid state" and the U.S. economy is in "good shape." At the same time, the number of initial jobless claims fell by 12,000 in the week of September 14 to a seasonally adjusted 219,000. This is also the lowest level since mid-May. Economists' previous consensus forecast was 230,000.
Hong Kong Stock Connect had a net inflow of HK2.6bn on Thursday of which Alibaba (9988) had the largest net inflow, reaching HK$3.68bn; followed by HKEX (388). Tracker Fund (2800) recorded the largest net outflow at HK$1.44bn, followed by Meituan (3690).
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