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Interest rates rose in the US as core inflation rose again.
The Hong Kong market opened lower last Thursday. Hang Seng index opened down 128 points. The market fell further after opening and fell to a low of 20099, down 175 points. However,...
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Interest rates rose in the US as core inflation rose again.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The Hong Kong market opened lower last Thursday. Hang Seng index opened down 128 points. The market fell further after opening and fell to a low of 20099, down 175 points. However, the market had support and rebounded. Hang Seng index rose to a high of 20343, up 69 points, and closed up 56 points. H share index closed up 18 points and technology index up 4 points. Turnover was $101.7 billion. The market was mixed and range bound.

For the market, stocks were mixed. Alibaba planned to launch its AI product. Share price rose 2.2% for 39-point gain to lead the blue chips. China is reviewing Micron Chips for safety concern. Chinese semiconductor share rose sharply. SMIC rose 7.67%. Huahong Semiconductor rose 3.6%. Technology stocks were mixed. Tencent rose 0.1%. However, JD lost 3%. Baidu lost 2.66%. Weibo lost 4.7%. GDS lost 4.7%. Kingsoft lost 6.9%. However, handset suppliers rose. Foxconn rose 3.6%. Hon Teng rose 10.8%. ZTE rose 4%. Auto stocks fell. Nio lost 5.6%. XPeng lost 2.7%. 1/3 of last year’s newly built residential properties failed to sell. Mainland developers fell. New Town lost 4.6%. Sino Ocean lost 4.8%. Longfor lost 2.4%. Country Garden lost 2.4%.

On the other hand, gold surged to over US$2000 per once. Gold miners soared. China Gold rose 18%. Lingbo Gold rose 13%. Zhaojin rose 4.1%. Zijin rose 5.3%. Gold retailers also rose. Chow Sang Sang rose 3.8%. Chow Tai Fook rose 3.2%.

Last week, the US Commerce Department announced increase in March non-farm payroll of 238,000, slightly better than expected. The unemployment rate fell to 3.5%. Employment was still strong, putting pressure on interest rates. 2-year treasure yield rose to 4%. European and American markets rose slightly last Thursday. Dow Jones rose 2 points. S & P rose 14 points and Nasdaq rose 91 points. Overnight, US markets were mixed. Dow Jones rose 101 points. S & P rose 4 points but Nasdaq lost 3 points. Apple’s first quarter computer sales fell. Share price lost 3.6% to drag down Nasdaq. Hong Kong ADR’s rose 18 points. Night future rose 244 points. We expect the market to fall today.  
 
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