U.S. Stocks
Fundamental Analysis:
U.S. stocks closed near session highs as the S&P 500 posted its biggest two-day gain since April 2020.
Fed Chairman Jerome Powell’s speech on the outlook for economic growth was upbeat in tone after the Federal Reserve raised interest rates for the first time since 2018.
Powell said the economy is strong enough to handle policy tightening, and the probability of the recession is “not particularly high”.
At the same time, U.S. Treasury yields rose, led by short-end interest rates.
The swap trades, linked to the Fed’s decision day at one point showed the Fed would raise rates by at least 75 basis points at its next two meetings, implying one of those hikes would be more than the usual 25 basis points.
The Fed raised rates by 25 basis points on Wednesday, 16th March 2022, and hinted that it would raise rates at all six remaining meetings this year to curb inflation, which has reached a four-decade high.
Plus, it said it would begin deciding to reduce its $8.9 trillion balance sheet “at a future meeting”.
Powell said Fed officials have made good progress this week in defining a plan and will likely start the process at the May meeting.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow focuses on the 33390-line today. If the Dow runs stably above the 33390-line, it will pay attention to the suppression strength of the 34088 and 34477 positions. If the Dow breaks below the 33390-line, it will pay attention to the support strength of the 32975 and 32781 positions.
Hong Kong Stocks
Fundamental Analysis:
The U.S. interest rate hike came to fruition. The Russia and Ukraine situation eased, and the global financial markets ushered in a big rebound market.
Hong Kong stocks continued yesterday’s rally. The Hang Seng Index (HSI) rose 6.69% up by more than 1,300 points, back above 21,000 points. The Hang Seng China Enterprises Index (HSCEI) rose by 7.64%, while the Hang Seng TECH Index (HSTECH) rose by 10.88%.
On the market, China stocks surged overnight, and large technology stocks continue to rebound violently. Baidu, Inc. (9888.HK), JD.com, Inc. (9618.HK), Alibaba Group Holding Limited (9988.HK), and Meituan (3690.HK) are up by nearly 15%, while Tencent Holdings Limited (0700.HK), and Kuaishou Technology (1024.HK) rose more than 9%.
Auto stocks, F&B stocks, tourism stocks, gambling stocks, cell phone concept stocks, biotechnology stocks, domestic housing stocks and property management stocks once again joined hands to soar, while Jiumaojiu International Holdings Limited (9922.HK), XPeng Inc. (9868.HK), Country Garden Services Holdings Company Limited (6098.HK), Longfor Group Holdings Limited (0960.HK) are opening higher by nearly 15%.
On the other hand, only a few domestic banking stocks fell, with China Zheshang Bank Co., Ltd (2016.HK), and Bank of Communications Co., Ltd. (3328.HK) falling slightly.
Yesterday, the State Council Financial Stability Development Committee held a special meeting and mentioned that the current Chinese and U.S. regulators have maintained good communication. They also added that they have made positive progress and are working to form a concrete cooperation program.
Overnight China stocks surged collectively, with the Nasdaq Golden Dragon China Index closing up by nearly 33%, the largest gain since 2001.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 Index focuses on the 19517-line today. If HK50 can run stably above the 19517-line, then pay attention to the suppression strength of 22127 and 22785. If HK50 runs below the 19517-line, then pay attention to the support of the 18606-line.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 pays attention to the 13371-line today. If the A50 runs steadily above the 13371-line, pay attention to the suppression strength of the 13983 and 14669 positions. If the A50 runs below the 13371-line, it will open up further downside trend. At that time, pay attention to the support of the 12791-line.
Risk Disclosure
Trading in financial instruments involves a high degree of risk due to fluctuations in the value and price of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding the investor’s initial investment could incur within a short period of time. The past performance of a financial instrument is not an indication of its future performance.
Please make sure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with us. You should seek independent professional advice if you do not understand the risks disclosed by us herein.
Disclaimer
While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.
