Daily Investment Strategy
Hang Seng Index rose 363 points on Tuesday
The Hang Seng Index rose 363 points or 1.8% to 20,145 on Tuesday. HSTECH rose 104 points or 2.5% to 4,233 and HSCEI rose 129 points or 1.9% to 6,833. Daily market turnover was HK$120.6bn.
U.S. stocks end lower on first trading day of 2023, dragged by Apple and Tesla
The earlier negative sentiment could extend into 2023 as the market believes Fed will continue raising interest rates in the coming months, fueling fears that the U.S. economy could slip into a recession. The S&P 500 fell 0.40% to close at 3,824.14. The Dow Jones Industrial Average fell 10.88 points, or 0.03%, to 33,136.37, with Boeing shares offsetting losses. The Nasdaq Composite fell 0.76% to 10,386.99. Apple shares fell 3.7%, with market cap closing at just under $2 trillion for the first time since 2021. Meanwhile, shares of electric-car maker Tesla Inc (TSLA) fell more than 12% on Tuesday after the company reported lower-than-expected quarterly and full-year deliveries.
Former New York Fed chief: Recession ‘pretty likely’ in US
“A recession is pretty likely just because of what the Fed has to do,” Former Federal Reserve Bank of New York President William Dudley said in an interview with Bloomberg on Tuesday. “But what’s different this time I think is that if we have a recession, it’s going to be a Fed-induced recession and the Fed can end the recession by subsequently easing monetary policy.” Economic data released on Tuesday supported the chances of a recession. U.S. manufacturing contracted in December at the worst pace since Covid-19 began, as demand remained subdued and production sluggish. The S&P Global U.S. manufacturing PMI fell to 46.2 in December from 47.7 in November, the lowest level since May 2020. Wednesday will be an important day, with the release of JOLTS in the morning (US time) and the minutes of the latest Fed meeting on interest rates in the afternoon (US time).
Hong Kong Stock Connect had a net inflow of HK$4.25bn on Tuesday, of which Tencent (700) had the largest net inflow, reaching HK$1.58bn; followed by China Mobile (941). Meituan (3690) recorded the largest net outflow at HK$0.72bn, followed by Tracker Fund (2800).
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