July, global stock markets in a frenzy

In the blink of an eye, July has officially come to an end.

In the past month, global stock markets experienced ups and downs. The US stock market saw its longest consecutive monthly gain in two years, with Chinese concept stocks rising by 20% in July. European stocks achieved two consecutive months of gains, while the Hang Seng Tech Index entered a technical bull market and the A-share market closed in the red.

Amidst the optimism of cooling inflation and a "soft landing" for the economy, the US stock market achieved its first five-month consecutive gain in two years.

The S&P 500 Index rose by 3.11% in July, marking the first five-month consecutive gain since August 2021. The Dow Jones Industrial Average rose by 3.35% in July, reaching its longest streak since 1987. The Nasdaq Composite Index rose by 4.05% in July, achieving its first five-month consecutive gain since April 2021.

Overnight, the Nasdaq Golden Dragon China Index (HXC) stabilized above 7800 points, reaching its highest level in nearly six months since February 7th, with a cumulative increase of nearly 20% in July.

The European benchmark Stoxx 600 Index rose by 2% in July, marking its second consecutive monthly gain, as the market is optimistic about the second-quarter GDP growth data in the eurozone and the cooling of nominal inflation in July.

The Stoxx 50 Index approached its highest level since October 2007, with a cumulative increase of 1.6% in July. Among the stock markets in various European countries, the Russian MOEX Index rose by over 9%, approaching its high since February 22nd last year, and the Italian FTSE MIB Index rose by 5%, reaching a fifteen-year high.

The Hong Kong stock market experienced a frenzy in July. The Hang Seng Index rose by over 6.15%, returning to the 20,000-point mark on the last trading day, reaching a new high in three months, while the Hang Seng China Enterprises Index rose by 7.38%.

The Hang Seng Tech Index rose by 16.33%, closing at 4549.95 points, reaching a new high in nearly six months, with an increase of over 22% between May 31st and July 27th, entering a technical bull market.

The A-share market gained momentum in the second half of July and closed in the red. During this period, the Shanghai Composite Index rose by 2.78%, the Shenzhen Component Index rose by 1.43%, and the ChiNext Index rose slightly by 0.98%. The CSI 300 Index rose by 6.47%.

Over 2,800 stocks in the Shanghai and Shenzhen stock markets have risen, accounting for 54% of the total number of A-shares.

After the lively months of May and June, the Japanese stock market experienced a significant decline at the beginning of July. However, it partially recovered after the Bank of Japan made minor adjustments to its Yield Curve Control (YCC) policy. Throughout the month, the Nikkei 225 index fell slightly by 0.05%.