Daily Investment Strategy
Hang Seng Index rose 501 points on Monday
The Hang Seng Index closed at 21,133 points for the day, rose 501 points or 2.4%. The Hang Seng Technology Index reported at 4,751 points, up 298 points or 6.7%. The HSCEI Index rose 209 points, or 2.9%, to 7,509 points. The market turnover was HK$505.8billion.
S&P 500 closes lower as tensions rise in Middle East
The S&P 500 fell on Tuesday as investors grew increasingly worried about a wider conflict in the Middle East and fled risk assets after Iran fired several missiles at Israel. The Dow Jones Industrial Average fell 173 points, or 0.4%; the S&P 500 fell 1%; and the Nasdaq Composite fell 1.5%. On the corporate front, CVS Health shares fell 2% after Reuters reported that the company was considering spinning off its retail and insurance divisions. Boeing rose 1% despite a Bloomberg report that it is considering selling at least $10 billion worth of stock to improve its balance sheet. Increasing concerns about a widening conflict in the Middle East pushed up oil prices, rising on worries about supply disruptions in the region. Military stocks also rallied sharply, with Lockheed Martin Corp, Northrop Grumman Corp. and Harris Technologies Corp edged higher.
Iran fires missiles at Israel
Oil prices soared after the Israel Defense Forces said Iran fired missiles into the country. The VIX index, known as Wall Street's fear indicator, also broke through 20 at an intraday high, highlighting the market's growing concerns. Meanwhile, there is more US economic data to study as investors look for more clues over how the Federal Reserve might cut interest rates further this year. Nonfarm payroll data for October will be released this Friday, and economists expect an increase of 144,000 jobs.
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