green ice dollar

Global capital has returned to its former glory, and the US dollar index has risen 20% this year.

Hong Kong stocks are falling by the day. As of Wednesday, the Hang Seng Index has fallen by 26% this year, and by 13% in September alone. However, the investment environment is difficult this year, and it is normal for a large stock. market indices to fall by 20% The S&P has fallen by 23% this year, and the Nasdaq has fallen by 30%, but in the global market, there are two indices that have outperformed the experts, namely The UK’s FTSE 100 and Japan’s Nikkei Average , which fell 6.6% and 9% respectively.

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However, as long as you think a little deeper, you will know the reason, because the British pound and the Japanese Yen are the currencies that have fallen the worst this year. They have fallen more than 20% against the US dollar, and stocks have become relatively affordable. If the exchange rate factor is included in the index, Even if you convert them to US dollars, you will see that the FTSE index has fallen by 26% this year, and the Nikkei has also fallen by 27% ■ If you return to the Nasdaq and the S&P HSI, you will see that everyone is in trouble, not far from each other.

Global inflation is raging, and the US Federal Reserve wants to raise interest rates with a big hand to reduce inflation. Under the two-pronged approach of raising interest rates and shrinking the balance sheet, world capital has returned, and index the US dollar has risen 20% this year In other words, major currencies will fall against the US dollar 1, 20%, which is based on the basic market In addition to the pound and the Japanese Yen, which has fallen more than 20%, the New Zealand dollar is also down 18%, the Euro is also down 16%, the Australian dollar and the Canadian dollar are performing better, only down 12% and in Asia, Korea’s earnings also fell by 17%. The renminbi wasn’t too bad, but its depreciation accelerated significantly in September, and is down 12% this year.

Small-figure depreciation adds variables to North Water

Due to the implementation of the linked exchange rate in Hong Kong, the Hong Kong dollar is relatively stable. It has only decreased by 0.7% this year. However, the financial market is fair. Your exchange rate has not decreased, which is meaning that it has appreciated significantly against other currencies As well as affecting the real economy of Hong Kong In addition, Hong Kong assets have become more expensive. This situation is like the end of the 1990s. After the Asian financial crisis , the Hong Kong dollar did not depreciate significantly against other Asian currencies Increased housing supply, and ultimately led to a housing market crash.

The Hong Kong stock market has been extremely weak this year. The domestic anti-epidemic policy has caused the economy to fail or the main reason. However, few people mention that the Hong Kong dollar appreciates with the US dollar every day, and assets naturally For example, the minifigure has depreciated against the US dollar by 12% In other words, for Beishui, the Hong Kong dollar has also appreciated by about 12% . Beishui. Moreover, the CSI 300 Index is the same as the Hang Seng Index this year. It is down 20%, everyone is half a pound, and I am also cheap when you have a big sale. The motivation to buy stocks Hong Kong The daily depreciation should be temporarily converted into Hong Kong dollars to buy Hong Kong stocks, but Beishui has to buy Hong Kong stocks. Only by choosing stocks can you avoid the depreciation of minifigures, otherwise, the earnings will be more than r losses.

According to past experience, when the US dollar is strong, most Hong Kong stocks do not operate. This year is no exception. In addition, the recent rapid depreciation of the miniatures has bringing more pressure on Zhongzi shares. the US dollar index will be slightly adjusted in the future Hong Kong Stocks There is room to breathe.

green ice

This column is published every Friday

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