MHMarkets：2024.02.05 MHM European Time Analysis

Date: 2024.02.05 MHM European Time Analysis

On Thursday, the US Dollar Index reversed its upward trend under pressure from the strengthening British Pound, falling near the 103 level. This was close to the level before the Federal Reserve announced its interest rate decision on Wednesday, ultimately closing down by 0.446% at 103.06. Concerns about a potential banking crisis offset the cooling effect of reduced rate cut expectations, causing the 10-year US Treasury yield to break below the 3.9% level, closing at 3.882%, marking a new low for the year. The more rate-sensitive 2-year US Treasury yield closed at 4.211%.

After the initial jobless claims were announced, spot gold continued to rise, erasing all intraday losses, reaching a high of 2065.29. It closed up by 0.76% at $2054.9 per ounce, marking the fourth consecutive trading day of gains and hitting a two-week high. Spot silver closed up by 1.04% at $23.18 per ounce.

Due to media reports suggesting a possible ceasefire agreement between Hamas and Israel, international crude oil prices plunged during the session, turning from gains to losses and closing at new lows since January 23. WTI crude oil fell by 2.54% to $73.82 per barrel, and Brent crude oil fell by 2.08% to $78.77 per barrel.

The three major US stock indices collectively closed higher, with the Dow rising by 0.97%, the S&P 500 up by 1.25%, and the Nasdaq up by 1.3%. The KBW Bank Index fell by 1.7%, with Alliance West Bancorp (WAL.N) dropping over 7%, and New York Community Bank (NYCB.N) falling by 11%. The Nasdaq Golden Dragon China Index rose by 1.38%, with Li Auto (LI.O) surging over 5% and Bilibili (BILI.O) rising by 3%.

Major European stock indices were mostly in the red, with the Euro Stoxx 50 index down by 0.21%, Germany's DAX30 index down by 0.26%, and the UK's FTSE 100 index down by 0.11%.

In the Hong Kong stock market, the afternoon session continued the retracement trend from the morning, fluctuating downward and giving up the morning gains. The Hang Seng Index rose by a small margin, ending two consecutive declines with a gain of 0.52%. The Hang Seng Tech Index followed the decline in the afternoon, narrowing its gain to less than a hundred points. At the close, the Hang Seng Index rose by 0.52% to 15566.21 points, the Hang Seng Tech Index rose by 2.00% to 3065.95 points, and the total market turnover of the Hang Seng Index reached HKD 94.907 billion (compared to HKD 98.845 billion on the previous trading day). Throughout the day, tech stocks performed strongly, leading a collective rebound in the pharmaceutical sector driven by the BrightGene series. The Central Special Estimate sector fluctuated throughout the day. Among individual stocks, Orient Selection (01797.HK) rose by 6.74%, following the announcement of New Oriental and Yu Minhong's commitment to purchase a total of HKD 700 million worth of company shares at market price. China Literature Group (00772.HK) rose by 7.51%, WuXi Biologics (02269.HK) rose by 3.17%, WuXi AppTec (02359.HK) rose by 2.69%, and China Chemical Fertilizer (00297.HK) fell by 9.30%.

In the A-share market, after a lower opening, the three major indices rebounded after probing the bottom, with the Growth Enterprise Market Index surging over 2% at one point. In the afternoon, the indices retreated somewhat, with the Shanghai Composite Index turning negative again, while the Shenzhen Component Index and the Growth Enterprise Market Index narrowed their gains. At the close, the Shanghai Composite Index fell by 0.64%, the Shenzhen Component Index rose by 0.34%, and the Growth Enterprise Market Index rose by 1.00%. On the market, sectors such as communication equipment, CPO concepts, BC batteries, and semiconductors led the gains, while public transportation, diversified finance, and construction sectors led the declines.