Investment Daily

US stock market retreated overnight, however, Hong Kong equities rose onTuesday. The Hang Seng Index once surpassed 26,000-level in the afternoonsession. The Index increased 134 points and closed at 25,997 points. HSCEIclosed at 10,606 points, raising 9 point. Turnover for the whole day was $74.6billion. Capital flow into the local property sector, individual blue chip stockjumped over 7%. On the other hand, one short selling institution said it may issuenew report on Wednesday, the potential target counters recorded substantial losses.

    Investors were in a cautious mood as they wait for former FBI head Comey’stestimony to the Senate, the outcome of the U.K. general election, and a policymeeting of the European Central Bank, which will all be on Thursday. As a result,US stock market continued its consolidation on Tuesday. The Dow and theNasdaq fell 48 points (to 21,136) and 21 points (to 6,275) respectively. On theother hand, funds flow into bond market, with 10 year US Treasury Yield fell 4basis point to 2.14%.

    Thanks to buying interest on property stock, Hang Seng Index once overcome26,000. However, market breadth for the rally is not sufficient. Together withdaily turnover amount shrank in the past two trading days, we expect Hang SengIndex to continue oscillate at 26,000 today.