Daily Investment Strategy
Hang Seng Index rose 174 points on Thursday
The Hang Seng Index rose 174 points or 1.0% to 18,112 on Thursday. HSTECH rose 47 points or 1.3% to 3,739 and HSCEI rose 62 points or 1.0% to 6,421. Daily market turnover was HK$107.3bn.
Chip stocks drive Broadcom higher, S&P hits record high
The S&P 500 index rose on Thursday, setting a record close for the fourth consecutive session, as traders focused on more data that suggested inflationary pressures may be easing. The S&P 500 rose 0.2% to close at 5,432.40 points, a record high; the Nasdaq rose 0.3%, but the Dow Jones Industrial Average fell 65 points, or 0.2%. Shares of chipmaker Broadcom rose more than 12% after the company reported bumper earnings and raised annual guidance amid growing demand for artificial intelligence. The company also announced a 10-for-1 stock split. Tesla's stock price rose nearly 3%. Tesla CEO Musk said on social media that shareholders supported his $56 billion compensation plan and said that the company's registration location would be moved from Delaware to Texas.
Mild PPI data helps rate cut expectations
The U.S. producer price index unexpectedly fell in May, with monthly PPI falling 0.2% last month after rising 0.5% in April. The year-on-year increase slowed to 2.2% from 2.3% in April. Initial jobless claims jumped to a 10-month high last week, boosting financial market hopes that the Fed will begin cutting interest rates in September.
Hong Kong Stock Connect had a net inflow of HK3.99bn on Thursday, of which BYD (1211) had the largest net inflow, reaching HK$0.59bn; followed by CNOOC (883). HKEX (388) recorded the largest net outflow at HK$0.02bn, followed by SMIC (981).
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