Daily Investment Strategy
HSI fell 121 points on Monday
After opening 234 points lower, the Hang Seng Index fell 121 points, or 0.7%, to close at 16,600; the HSCEI fell 23 points, or 0.4%, to close at 5,856; the HSTECH fell 31 points, or 0.9%, to close at 3,442. The total trading turnover was HK$95.16bn. Zhaojin (1818) raised more than HK$1.7bn through a share placement at a discount of 9.7%, and its stock price fell 9.6%. Chow Tai Fook (1929)'s quarterly retail value increased by 12% yoy, but same-store sales in the mainland fell by 2.7%, and its stock price fell by 7.9%.
Bank of New York president says interest rate cut this year still possible
John Williams, chairman of the Federal Reserve Bank of New York, gave a speech yesterday. He did not agree that the recent inflation data was a turning point, and that the U.S will continue to grow at a solid pace, and consumer spending is driven by strong fundamentals. He believed that tightening monetary policy still needed, but the possibility of an interest rate cut this year should be existed.
All three major U.S. stock indexes recorded declines. The Nasdaq composite fell 290 points, or 1.79%, to close at 15,885; the S&P 500 fell 61 points, or 1.2%, to close at 5,061; the DJIA fell 248 points, or 0.65%, to close at 37,735.
U.S. retail sales beat market consensus
The U.S. March retail sales data has been released yesterday, which was overall better than consensus. Retail sales in March rose 0.7% MoM, beating market consensus of 0.4%. The previous value was revised up to 0.9%. Retail sales excluding automobiles increased by 1.1% MoM, significantly better than the expected 0.5%. The data showed that consumer demand was resilient and supported economic growth in the first quarter, but expectations of rate cuts may disappoint the market again. According to estimates from the interest rate futures market, most investors are betting the start of rate cut shall be September or November.
Hong Kong Stock Connect recorded a net inflow of HK$7.05bn on Monday, of which China Mobile (0941) had the largest inflow, reaching HK$580mn; followed by Tencent (0700). HKEX (0388) recorded a net outflow of HK$13.82mn.
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