Investment Daily Note

US stocks up on Europe’s full-blown QE .

The European Central Bank announced to begin a quantitative easing programme. It would purchase government bonds of 60 billion euros on a monthly basis from March 2015 to September 2016. US stocks were lifted. Dow closed at 17,814, up 260 points. S&P 500 closed at 2,063, up 31 points. NASDAQ closed at 4,750, up 83 points. ADRs rose in the US market, with their closing prices effectively putting HSI up 263 points, closing at 24,786. New York crude oil futures closed at US$46.31/bbl, down US$1.47. Fund flows were drawn into gold on the European QE measures might spur inflation. New York gold futures settled at US$1,300.7/oz, up US$7.

HSI lifted above resistance on Tencent and HSBC leads .

The Hang Seng Index opened 128 points higher and hit an intraday high at 237 points, finishing at 24,522, up 170 points. The HSCEI settled at 12,047, up 25 points. The market turnover reduced to HK$99.5bn. The People’s Bank of China resumed reverse repos and extended the term of a due medium-term lending facility (MLF). Most Chinese banks emerged higher. Bank of China (3988.HK, HK$4.46) gained 1.4%. China Taiping (966.HK, HK$23.65) rallied to 52-week record high during trade and closed up 0.2% on issuing positive profit alert. Chinese telecoms were lifted. China Mobile (941.HK, HK$103.30) hit new high, up 1.2% at close. China Telecom (728.HK, HK$4.63) and China Unicom (762.HK, HK$12.10) also hiked 2.2% and 0.7%. HSBC (5.HK, HK$71.90) came back from plight, up 1.8%. The other heavyweight Tencent (700.HK, HK$131.60) also climbed 2.3%. The two names added an aggregate of ~101 points to the HSI.