Daily Investment Strategy
Hang Seng Index rose 50 points on Tuesday
The Hang Seng Index rose 50 points or 0.3% to 17,769 on Tuesday. HSTECH fell 15 points or 0.4% to 3,539 and HSCEI rose 43 points or 0.6% to 6,374. Daily market turnover was HK$118.4bn.
S&P 500 closes above 5,500 for first time
On Tuesday, the S&P 500 index closed above 5,500 for the first time ever, supported by a surge in Tesla shares and optimism about a rate cut after Federal Reserve Chairman Jerome Powell welcomed recent inflation progress. The S&P 500 rose 0.7% to close at 5,510.65 points, setting its 32nd closing record this year. The Dow Jones Industrial Average rose 147 points, or 0.4%; the Nasdaq Index rose 0.7%, closing at 18,029.18 points, a record high. Tesla shares rose 10% after the electric car maker said it delivered 443,956 electric vehicles in the second quarter, beating estimates of 438,019 units. According to the New York Times, billionaire Barry Diller is considering acquiring Paramount, and the company's stock price rose nearly 8%.
Powell says Fed has made ‘quite a bit of progress’ on inflation
Powell expressed satisfaction with the progress on inflation but said he would like to see more progress before he is confident enough to begin cutting interest rates. “We want to be more confident that inflation is moving sustainably down toward 2% before we start the process of reducing or loosening policy,” he said at a central banking forum in Sintra, Portugal. The remarks come just a day ahead of the minutes of the Fed’s June meeting, with nonfarm payrolls on Friday. Meanwhile, the May JOLTs showed that there were 8.14 million job openings, up from 7.92 million in April and higher than the expected 7.95 million.
Hong Kong Stock Connect had a net inflow of HK5.95bn on Tuesday, of which CCB (939) had the largest net inflow, reaching HK$1.71bn; followed by ICBC (1398). Tencent (700) recorded the largest net outflow at HK$0.46bn, followed by Brilliance China (1114).
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