Daily Investment Strategy
Hang Seng Index fell 289 points on Wednesday
The Hang Seng Index closed at 20,637 points for the day, fell 289 points or 1.4%. The Hang Seng Technology Index reported at 4,640 points, fell 55 points or 1.2%. The HSCEI Index fell 118 points, or 1.6%, to 7,365 points. The market turnover was HK$427billion.
S&P 500 closes higher ahead of new inflation data
The S&P 500 closed higher on Wednesday as investors continued to digest clues from the Federal Reserve on interest rates ahead of new inflation data and a Tesla self-driving taxi event. The Dow Jones Industrial Average rose 431 points, or 1%, while the S&P 500 rose 0.7% and the Nasdaq Composite rose 0.5%. Alphabet shares fell 2% on news that the U.S. Department of Justice was considering sanctions against Google's parent company, which was found guilty of abusing its dominant market position in an antitrust case. Boeing Co shares fell more than 3% as the company faced an ongoing strike by workers at the International Association of Machinists after the company withdrew a contract submission from the association. Arcadia Lithium shares surged 31% after global mining company Rio Tinto agreed to acquire U.S.-based Arcadia Lithium for $6.7 billion in an all-cash deal. Meanwhile, shares of electric vehicle maker Tesla fell 1% as the company prepares to launch its robotaxi event on Wednesday.
Minutes show Fed officials were divided on whether to cut interest rates by 50 basis points in September
Minutes of the Federal Reserve's September 17-18 meeting released on Wednesday showed that while a "substantial majority" of Fed policymakers supported the central bank's sharp interest rate cut in September, there were signs that some members were leaning toward starting the interest rate cut cycle with a milder rate cut, out of concerns about the strength of the economy. On the economic front, September's CPI, scheduled to be released on Thursday, will provide investors with new clues about the direction of monetary policy.
Hong Kong Stock Connect had a net outflow of HK0.63bn on Wednesday of which Alibaba (9988) had the largest net inflow, reaching HK$1.25bn; followed by SMIC (981). Meituan (3690) recorded the largest net outflow at HK$1.49bn, followed by HKEX (388).
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