U. S. stocks continued to strengthen on Monday, while oil prices and base metals remained mostly higher. On the other hand, Hong Kong stocks still have some worries: first, the 10-day moving average has not been broken, and second, trading volume has shrunk again, which is not as large as last Friday.
The Dow and S & P 500 hit new closing highs and oil prices strengthened.
U.S. stocks closed higher, with the Dow and S & P 500 hitting new closing highs, helped by technology stocks and energy stocks rising along with oil prices, as investors waited for the Fed to raise interest rates as expected later this week.
The Dow Jones Industrial average rose 56.87 points, or 0.23%, to 24386.03; the Standard & Poor's 500 Index rose 8.49 points, or 0.32%, to 2659.99; and the NASDAQ rose 34.997 points, or 0.51%, to 6875.078.
The Dow and Standard Index of US stocks closed at new highs, stimulating the ADR index of Hong Kong stocks to stabilize, closing at 29050 points on a pro rata basis, up 84 points or 0.29%. HSBC Holdings PLC closed at 78.39 yuan, up 0.09 yuan over the Hong Kong close, while Tencent closed at 406.93 yuan, up 1.53 yuan over the Hong Kong close.
In European stocks, technology stocks continued to fall, outweighing the strong gains in financial stocks, while the rise of the euro also hit the euro zone market, sending the pan-European STOXX 600index down 0.05 per cent.
On commodities, higher oil prices reversed early losses after investors focused on commodity markets after an oil pipeline in the North Sea was closed for maintenance. Brent crude closed up $1.29, or about 2%, at $64.69 a barrel, while u.s. crude closed up $0.63, or 1%, at $57.99 a barrel.
Gold prices held steady below $1250 a troy ounce and last week suffered their biggest weekly decline in more than six months on expectations that the Fed would raise interest rates this week. Us February gold futures closed down $1.50, or 0.1%, at $1246.90 an ounce.
Most of London's base metals rose, with copper for LME delivery up 1.16% at $6654 a tonne. Aluminum for LME delivery closed up 0.55% at $2028 a tonne. Zinc for LME delivery closed up 1.38% at $3130 a tonne. Lead in LME closed up 1.69% at US $2494.5 / ton. Nickel for LME delivery closed up 2.33% at US $11210 / tonne. Tin for LME delivery closed down 0.03% at US $19445 / ton.
The trend of Hong Kong stocks is still uncertain. Focus on four types of stocks.
The Hang Seng Index opened high in early trading on Monday and expanded its gains in the afternoon, rising as high as more than 350 points to 28994 points, breaking through its morning high. As of the close, the Hang Seng Index was up 1.14% at 28965.29 points, with a market turnover of 109.19 billion.
However, Hong Kong stocks still have some worries: first, the 10-day moving average did not break through, and second, trading volume shrank again, not as large as last Friday. For Tuesday's trend, there are two situations: one is a relatively weak situation, that is, it is blocked by 28989 points after the opening, and if it breaks 28875 points, you have to be careful about the next adjustment; the other is to rise strongly again, directly break the 10-day line, and then attack the 20-day moving average.
In terms of plate, Zhitong Financial APP believes that insurance, automobile, 5G concept and pharmaceutical stocks are still worthy of attention. The trend of inner housing stocks is not consistent with expectations, taking into account the following U. S. stock interest rate hikes and continued regulation of real estate, the sector will be suppressed in the near future, do not recommend attention.
Deng Shengxing, chairman of the Hong Kong Stock analysts Association, said that the Federal Reserve may raise interest rates this week. In addition, the tax reform plan proposed by the US Senate was passed on December 2. As technology stocks have always enjoyed tax concessions, it is expected that the effect of tax reform will be more helpful to the old economic industries, triggering the outflow of funds out of the science and technology sector to track tax reform concept stocks. The one-month Hong Kong dollar interest rate has been as high as 1% for six consecutive days. Under the expectation of normalization of bank interest rates, the spread is expected to widen. The banking and asset management industry is expected to benefit significantly. You can focus on international bank stocks, such as HSBC Holdings PLC (00005) and BOC Hong Kong (Holdings) Limited (02388).
Overnight, the US technology sector is once again favored by capital, which may also boost the Hong Kong stock technology sector. Lu Weijie, vice president of market planning at Forto Securities International (Hong Kong), said that Tencent's rally is not over at all, but just a normal adjustment. Tencent has rebounded since last Thursday and reached 400 yuan on Monday. Due to the coming Christmas, New Year's Day, and Spring Festival, after finding lows and rebounding in the market, there will be a period of horizontal trading. Before the annual report after the Spring Festival next year, it is believed that Tencent is likely to start a new uptrend again in the future.