Daily Investment Strategy
Hang Seng Index rose 833 points on Wednesday
The Hang Seng Index rose 833 points or 4.2% to 20,619 on Wednesday. HSTECH rose 260 points or 6.6% to 4,185 and HSCEI rose 322 points or 5.1% to 6,914. Daily market turnover was HK$153.9bn.
Dow ends flat, 10-year U.S. Treasury yield hits 4%
The Dow ended flat on Wednesday and U.S. Treasury yields continued to move higher, suggesting the Federal Reserve may be on a steeper-than-expected path of rate hikes. The S&P 500 fell 0.47% to 3,951.39 and the tech-heavy Nasdaq Composite fell 0.66% to 11,379.48. The Dow Jones Industrial Average edged up 5.14 points to close at 32,661.84. On the earnings front, shares of home improvement retailer Lowe's fell nearly 6% after it reported fourth-quarter revenue that fell short of Wall Street expectations and a surprise decline in annual sales guidance. Electric vehicle stocks are also in focus as Tesla kicks off its investor day, with the electric automaker expected to unveil its third master plan and provide insights into its long-term growth plans. Rival Rivian Automotive reported mixed fourth-quarter results, missing revenue expectations and annual production below Wall Street expectations, sending its shares down more than 18 percent. Shares of cloud software maker Salesforce surged 16% in after-hours trading on Wednesday after the company reported profit that topped Wall Street expectations and issued a better-than-expected forecast.
Inflation in Europe and America did not cool down as expected
Minneapolis Federal Reserve President Neel Kashkari said Wednesday he is "open" to the possibility of a rate hike of "25 or 50 basis points" at this month's policy meeting. Meanwhile, the benchmark 10-year yield briefly topped 4% for the first time since November. The 1-year Treasury yield rose above 5%. In line with other EU countries, German consumer prices rose more than expected in February, suggesting stubborn cost pressures have not eased and boosting expectations for a rate hike by the European Central Bank.
Hong Kong Stock Connect had a net inflow of HK$3.39bn on Wednesday, of which Tencent (700) had the largest net inflow, reaching HK$1.33bn; followed by Meituan (3690). Li Auto (2015) recorded the largest net outflow at HK$0.26bn, followed by CNOOC (883).
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