Investment Daily
Although US dollar remained strong, Hong Kong equities bounced on Tuesdayafter two-day decline. But the turnover reduced to less than $70 billion. Hang SengIndex increases 101 points to close at 22,323 points. HSCEI closes at 9,398 points,rising 55 points. Turnover for the whole day is $69.5 billion. The Baltic Dry Indexreached year-high, but the shipping stocks closed mixed. On the other hand,construction sector fell in general with losses between 2% to 3%.
US retail sales rose at a strong pace of 0.8% in October, and is also above marketexpectation. Besides, investors expect oil producing countries this month endmight result in lower oil production, oil price rose 5.8% to 45.8 US dollar perbarrel, oil related stocks rose sharply on Tuesday. Besides, hi-tech stocks such asMicrosoft and Apple also rebounded on Tuesday after recent weakness. The Dowand the Nasdaq rose 54 points (to 18,923) and 57 points (to 5,276) respectively.
RMB recent weakness might hurt HK stock sentiment. However, as Shenzhen HKconnect will soon announce to open, while HK stock performed well in the USADR market last night, we expect HK stock market to open higher today. HangSeng Index initial resistance will be 100 Day SMA(22,606).