[True Insight Institutional View] U.S. Nasdaq fell 0.89%, Hang Seng Index breaks below 50-day moving average, trend turning weaker

The three major U.S. stock indices fell, with the Dow down 0.36%, and the S&P 500 and Nasdaq down 0.41% and 0.89%, respectively. The Golden Dragon Index, which reflects the performance of Chinese concept stocks, fell 2.47%, marking its fourth consecutive day of decline.

As for the Chinese and Hong Kong stock markets, they fell yesterday. In the A-share market, the Shanghai Composite Index and the Shenzhen Component Index opened flat and then fluctuated lower. The decline narrowed in the afternoon. The former closed at 4,093 points, down 0.32%, while the Shenzhen Component Index fell 0.88% to close at 15,043 points. Trading in both markets was quite active, reaching 2.8 trillion yuan. The Hong Kong stock market fell for the second consecutive trading day. The Hang Seng Index opened 64 points lower and continued to decline. After falling below the 26,000-point level, the decline further widened, with a maximum drop of 322 points to a low of 25,840 points. Although the decline narrowed in late trading, the Hang Seng Index still fell 248 points or 0.95% for the day, closing at 25,915 points. The Hang Seng TECH Index fell nearly 2% to close at 4,865 points, with daily turnover increasing to 255.4 billion yuan. Among the constituents, resource stocks performed best, with $PETROCHINA(00857.HK) rising over 4.2%. Additionally, $CNOOC(00883.HK), $CHINA SHENHUA(01088.HK), and $SINOPEC CORP(00386.HK) also rose 2.9%, 1.9%, and 1.6%, respectively. Telecom stocks also performed well, with China Telecom (00728.HK) up 1.6%, and China Mobile (00941.HK) and China Unicom (00762.HK) also up 0.7%. Among the declining stocks, Innovent Biologics (01801.HK) performed the worst, falling nearly 6%. Geely Automobile (00175.HK), BYD Electronic (00285.HK), and Sino Biopharmaceutical (01177.HK) also fell more than 4%.

As the situation in the Middle East has become tense again, market conditions may come under pressure once more. The future market trend must continue to pay attention to related news and the A-share market. From a technical analysis perspective, the Hang Seng Index lost support at the 10-day (26,085 points) and 50-day moving averages (25,944 points) yesterday, indicating a weakening trend. It may need to further test the 25,500-point level.

Source: Bright Smart Securities