Investment Daily Note

European economy looks bright; S&P 500 hit historical high .

US stocks were bolstered up by handsome economic figures in Europe. S&P 500 rallied to a historical high. Dow closed at 18,019, up 47 points. S&P 500 closed at 2,097, up 9 points. NASDAQ closed at 4,894, up 36 points to a record high in 15 years. ADRs rose in the US market, with their closing prices effectively putting HSI up 13 points, closing at 24,695. Oil prices rose as the US counted fewer drilling rigs again. New York crude oil futures closed at US$52.78/bbl, up US$1.57. The market remained watchful of Greece’s sovereign debt problem. Gold prices were driven higher. New York gold futures settled at US$1,227.1/oz, up US$6.4.

HSI reclaimed 10-day and 20-day MAs; Chinese auto makers outperformed .

Rallies on US stocks sent the Hang Seng Index higher by 113 points at day open yesterday. Doubly helped by the Shanghai Composite, the HSI reclaimed 10-day and 20-day MAs, closing at 24,682, up 260 points. The HSCEI settled at 11,922, up 138 points. The market turnover was HK$71.7bn. BYD (1211.HK, HK$29.40) added 9.1% to become the best-performing HSCEI constituent last Friday on proposing to sell assets and issue bonds. Other vehicle makers also gained. Great Wall Motor (2333.HK, HK$49.10) and Brilliance Chi (1114.HK, HK$14.80) were up 5.3% and 1% respectively, and the former rose to a 52-week new high during trade. Fosun Intl (656.HK, HK$11.78) successfully acquired resort operator Club Med, jumping 3% last Friday to log another 52-week record high. The HSI Services Limited’s quarterly review results were released. The numbers of HSI and HSCEI constituents remained unchanged at 50 and 40 respectively.