Daily Investment Strategy
HSI rose 545 points on Wednesday
The Hang Seng Index rose 545 points or 3.6% to 15,899 on Wednesday. HSTECH rose 133 points or 4.2% to 3,281 and HSCEI rose 212 points or 4.1% to 5,353. Daily market turnover was HK$128.8bn.
Nasdaq and S&P 500 close higher for fifth consecutive trading day, Netflix stock soars
The S&P 500 rose on Wednesday, with Netflix leading technology stocks higher, pushing the market to new highs. The S&P 500 index edged up 0.08% to close at 4,868.55 points, setting a new all-time closing high. Boosted by gains in technology stocks, the Nasdaq rose 0.36% to 15,481.92 points. The Dow Jones Industrial Average fell 99.06 points, or 0.26%, to 37,806.39, hurt by losses of more than 2% a day after Verizon and 3M reported results. Netflix shares surged more than 10% after the company announced that its total subscriber base reached an all-time high of 260.8 million. Elsewhere, Microsoft's stock price rose nearly 1%, and its market value briefly exceeded US$3 trillion for the first time. Meta shares rose 1.4%, giving the Facebook parent company a market value of more than $1 trillion. On the earnings front, ASML ADR reported fourth-quarter earnings, with both revenue and profit beating expectations and its stock price rising more than 10%, but Texas Instruments failed to join the rebound after announcing lower-than-expected guidance. FactSet data shows that so far, more than 16% of companies in the S&P 500 Index have announced quarterly financial reports, and more than 71% of them have exceeded Wall Street expectations.
The U.S. PMI composite index rose to 52.3, signaling an acceleration in economic growth
The U.S. manufacturing PMI rose from 47.9 to 50.3 in January, resuming expansion and reaching the highest level in 15 months. The services PMI rose to 52.9 from 51.4, a seven-month high. The PMI composite index rose to 52.3 from 50.9, hitting a seven-month high. Driven by improving demand conditions and steady growth in new orders over the past three months, growth momentum has increased significantly, lifting business confidence to the most optimistic level since May 2022. Additionally, there is optimism about lower inflation in 2024, which is expected to ease cost-of-living pressures and potentially pave the way for lower interest rates.
Hong Kong Stock Connect had a net inflow of HK$1.98bn on Wednesday, of which Tracker Fund (2800) had the largest net inflow, reaching HK$1.03bn; followed by CNOOC (883). Tencent (700) recorded the largest net outflow at HK$0.67bn, followed by CCB (939).
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