【Zhenzhuo Institutional View】U.S. stocks performed well with the Dow Jones rising over 1%, and the Hang Seng Index rebounded to 25,500 points

The three major U.S. stock indices performed well. The Federal Reserve announced a 0.25% interest rate cut, in line with market expectations, boosting the investment sentiment in U.S. stocks. The Dow rose 1%, while the S&P 500 and Nasdaq gained 0.68% and 0.33%, respectively. The Golden Dragon Index, reflecting the performance of Chinese concept stocks, also rose 0.64%.

Chinese and Hong Kong stocks stabilized after fluctuations yesterday. For A-shares, the two major indices showed mixed performance, with the Shenzhen Component Index initially weak, falling as much as 1.1% in early trading, but rebounding significantly in the afternoon, rising as much as 0.51%, and finally at 13,316 points, up 0.3%. The Shanghai Composite Index also fell in early trading but recovered some losses in the afternoon, closing at 3,900 points, down 0.23%, with full-day turnover below 1.8 trillion yuan. Hong Kong stocks also strengthened in late trading, with the Hang Seng Index initially following A-shares lower, falling as much as 176 points, but improving in the afternoon as A-shares rebounded, eventually turning positive and closing at the day's high of 25,540 points, up 106 points or 0.42%. The Hang Seng Tech Index also rebounded after an early decline, closing at 5,581 points, up 0.48%, with market volume slightly reduced to 193.4 billion yuan. Among the constituents, WH Group (00288.HK) performed the best, rising more than 5%, while Li Ning (02331.HK), CSPC Pharmaceutical (01093.HK), and Haidilao (06862.HK) all gained more than 3%. Among decliners, Orient Overseas (00316) was the worst performer, falling nearly 6%, while Xinyi Solar (00968.HK) and China Merchants Bank (03968.HK) continued to drop more than 3%. Tech sector was mixed, with Meituan (03690.HK), Baidu (09888.HK), and Alibaba (09988.HK)$BABA-W(09988.HK) performing well, while JD.com (09618.HK) was weak, and Tencent (00700.HK)$TENCENT(00700.HK) and Kuaishou (01024.HK)$KUAISHOU-W(01024.HK) stabilized.

The Hang Seng Index regained the 25,500-point level, showing slight improvement in trend, but it has yet to break above key moving averages, and future performance remains to be seen. The index is expected to remain range-bound, fluctuating between 25,200 and 26,000 points.

Source: Bright Smart Securities