Global stock markets weaken, Hong Kong stocks decline, but A-shares remain in a sideways oscillation, waiting for the key window to arrive!
1. U.S. stock market precious metals weaken
Overnight, the U.S. stock market ended its upward trend, with the three major indices experiencing a general decline, but the drop was not significant. The declines for the Dow, Nasdaq, and S&P 500 indices were: 0.45%, 0.14%, and 0.35%, respectively. Among these, storage chips continued to strengthen, with Micron Technology rising by 4.09%. On the other hand, the weak directions were precious metals and automotive manufacturing, with Tesla, representing the new energy vehicle and robotics sector, falling sharply by 3.39%.
2. Asia-Pacific stock markets weaken, Hong Kong stocks continue to decline!
Today, the Asia-Pacific stock markets opened weakly, replicating the trend of the U.S. stock market from last night, but the declines were not significant. Yesterday, A-shares moved in the opposite direction to Hong Kong stocks, with A-shares rising sharply while Hong Kong stocks plummeted due to the drag from bank stocks. Today's Hong Kong stocks continued to exhibit a downward trend. The Hang Seng Index opened lower, closing down nearly 1% at midday, with non-ferrous metals leading the drop; the semiconductor sector showed obvious retracement, with the Hang Seng Technology Index dropping 1.3% in the morning.
3. A-shares in sideways oscillation, divergence in gains and losses
Fortunately, today's A-shares did not follow the downward trend of Hong Kong stocks. Although the Shanghai Composite Index showed weakness in the morning, confirming short-term pressure below 3950 points, it only fell slightly by 0.13% at midday, closing at 3918 points. The Shenzhen Component Index and ChiNext Index rose by 0.09% and 1.07%, respectively, while the Sci-Tech 50 Index experienced a slight decline of 0.04%, indicating an overall oscillating washout market.
4. Market vitality remains
This morning, the transaction volume of the two markets reached 1.26 trillion, only 34.7 billion less than yesterday morning, indicating that the market has not completely returned to a state of stagnation. The enthusiasm and vitality of the market are still present. In both markets, only the leading technology stocks remained strong, while micro-cap stocks and the Shanghai Stock Exchange 50 showed weak trends, representing a situation where individual stocks fell while the index did not. In total, 1741 stocks rose, while 3556 stocks declined.
5. The market is waiting for an important window period
This Thursday, the Federal Reserve is about to implement interest rate cuts, with the CME Group predicting a 90% chance of a 25 basis point cut in December. Wall Street investment banks have been revising their reports, confirming the December rate cut; subsequently, an important meeting is likely to be held, with a series of significant directions expected from Friday afternoon to the weekend. Currently, the market is undergoing a washout, waiting for the key window to arrive.
In summary, the trends from last Friday and this Monday belong to policy-driven benefits, but the critical policy drive will have to wait until the end of this week, around mid-January. By that time, the major directions will be released, information from all aspects will be clearer, and the main line of the market will gradually take shape, leading to a major counterattack from the main funds.
