U.S. Stocks
Fundamental Analysis:
U.S. stocks closed lower on Thursday, 21st April 2022, with the Nasdaq down by more than 2%, as investors reacted to statements from Federal Reserve officials, including Powell, who hinted at aggressive interest rate hikes this year.
Powell said a 50 basis point rate hike at the Fed’s 3rd – 4th May meeting would be “one of the options”.
Powell also said at the International Monetary Fund (IMF) meeting on the global economy, that given that U.S. inflation is currently about three times the Fed’s 2% target, it is appropriate to move a little faster.
Earlier, San Francisco Fed President Daly said she supports raising the overnight borrowing rate target to 2.5% by the end of the year, but whether it needs to be raised again, or by how much, will depend on inflation and labor market conditions.
With this, the Fed official’s statement stifled the initial momentum the market had gained from positive corporate results. All three major stock indexes opened higher, buoyed by strong results from Tesla and airlines. However, gains narrowed in the morning, and by the time Powell spoke, both the S&P 500 and Nasdaq had turned lower.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow focuses on the 35110-line today. If the Dow runs stably below the 35110-line, it will pay attention to the support strength of the 34724 and 34477 positions. If the Dow breaks above the 35110-line, it will pay attention to the suppression strength of the 35308 and 35512 positions.
Hong Kong Stocks
Fundamental Analysis:
Hong Kong stocks opened sharply lower again, with the Hang Seng Index (HSI) down 2.03%, the Hang Seng China Enterprises Index (HSCEI) down 2.34%, and the Hang Seng Technology Index down 3.15%.
On the market, overnight popular Chinese concept stocks continue to sink, large technology stocks across the board plunged, Meituan (3690.HK), Baidu, Inc. (9888.HK), JD.com, Inc. (9618.HK), and Alibaba Group Holding Limited (9988.HK) are down more than 5%, while Tencent Holdings Limited (0700.HK) fell nearly 4%, NetEase, Inc. (9999.HK), and Kuaishou Technology (1024.HK) are down.
Auto sector lead the decline, home appliance stocks, coal stocks, non-ferrous metal stocks, photovoltaic stocks, oil stocks, domestic insurance stocks, and dairy stocks have gone lower.
On the other hand, some domestic housing stocks and telecom stocks opened higher, with China Unicom (Hong Kong) Limited (0762.HK) bucking the trend by 1%. On the IPO side, Zhihu opened down over 22% on its first day of listing.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 focuses on the 21450-line today. If HK50 can run stably below the 21450-line, then pay attention to the support strength of 20467 and 19517. If HK50 runs above the 21450-line, then pay attention to the suppression strength of 22127 and 22785.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 pays attention to the 13157-line today. If the A50 runs stably above the 13157-line, pay attention to the suppression strength of the 13983 and 14669 positions. If the A50 runs below the 13157-line, it will open up further downside. At that time, pay attention to the support of the 12733-line.
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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.
