Daily Investment Strategy
Hang Seng Index rose 259 points on Friday
The Hang Seng Index rose 259 points or 1.2% to 21,052 on Friday. HSTECH rose 67 points or 1.5% to 4,494 and HSCEI rose 106 points or 1.5% to 7,172. Daily market turnover was HK$174.1bn.
Dow closes down more than 300 points as strong jobs data points to more rate hikes
U.S. stocks fell on Thursday after employment data showed the labor market remained strong despite the Federal Reserve raising interest rates to curb inflation. The Dow Jones Industrial Average fell 339.69 points, or 1.02%, to 32,930.08. The S&P 500 fell 1.16% to close at 3,808.10 and the Nasdaq Composite lost 1.47% to close at 10,305.24. Walgreens shares fell 8% after earnings showed a quarterly loss from a $5.2 billion opioid lawsuit settlement. Bed, Bath & Beyond (BBBY) fell 24.2% after saying it was short on cash and considering bankruptcy, and crypto bank Silvergate Capital (SI) plunged 42.9% after it disclosed a large number of customer withdrawals. Microsoft (MSFT) was the biggest drag on tech stocks for a second day in a row, a day after UBS raised concerns about slowing growth in the tech giant's cloud and office businesses. Meanwhile, shares in e-commerce giant Amazon fell more than 2% after the company confirmed plans to cut 18,000 jobs to save costs. The company warned in December of "further job cuts" in early 2023. On the economic data front, private employment rose more than expected in November and initial jobless claims fell, pointing to more rate hikes.
Numbers of U.S data released
In December, the increase in ADP private jobs rose to 235,000 from an upwardly revised 182,000 in November, far more than the expected 150,000. The Labor Department also announced that the number of initial jobless claims for the week ended December 31 decreased by 19,000 to 204,000, lower than the expected 225,000, and the number of continuing claims for the week ended December 24 also fell by 24,000 to 1.694 million, missing expectations of 1.728 million.
Hong Kong Stock Connect had a net inflow of HK$3.29bn on Thursday, of which Kuaishou (1024) had the largest net inflow, reaching HK$0.78bn; followed by China Mobile (941). Tencent (700) recorded the largest net outflow at HK$0.71bn, followed by Wuxi Bio (2269).
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