Investment Daily

While Hang Seng Index ADR performed badly on Monday night, the index didn’tdrop too much on Tuesday. The index opened with 328 points decline in themorning, followed by massive improvement. It closed at 20,172 points, dropping54 points. HSCEI closed at 8,536 points, falling 31 points. Turnover was $65.8billion. The sovereign rating of United Kingdom was downgraded by ratingagencies, among which S&P cut two notches from AAA to AA. Yet the relatedstocks, such as international banking firms, didn’t largely decrease. Macau gamingrevenue in June may be worse than expected, leading to stock decline in gamingindustry for about 2%.

    After a severe sell off in the past two trading days, US stock market sharplyrebounded on Tuesday. Besides, latest US economic data released remained firm,also helped to support the market. Banking and energy stock led the rebound. TheDow and the Nasdaq rose 269 points (to 17,410) and 97 points (to 4,692)respectively. On the other hand, oil price also rebounded, rose 3.3% to 47.8 USDollar per barrel.

    HK stock market remained stable recently, we believe that it is due to half year endwindow dressing activities as well as speculation of the announcement ofShenzhen HK stock connect. Local blue chips performed well in the US ADRmarket last night, HK stock market will open higher today. However, as globalmarket outlook remained uncertain, investors should not be too aggressive.