U.S. Stocks
Fundamental Analysis:
U.S. stocks closed lower on Monday, 29th August 2022, extending last week’s selloff due to lingering concerns about the Federal Reserve’s determination to aggressively raise interest rates to fight inflation despite the economic slowdown.
Fed Chairman Jerome Powell said on Friday that the U.S. economy will need “some time” to tighten monetary policy before inflation is brought under control, and hopes that the Fed could shift to more moderate rate hikes were dashed after recent data suggested inflationary pressures were peaking.
The S&P 500 recovered from an intraday low, with the index dipping 1% during the session to its lowest in a month, but the index still posted its biggest two-day percentage loss in two and a half months.
Large technology and growth stocks were the biggest drag on the index as Treasury yields rose, with Apple down 1.37% and Microsoft down 1.07%.
The CBOE’s volatility index, Wall Street’s fear gauge reached a seven-week high of 27.67 points. The highlight of this week’s economic data is the August nonfarm payrolls report due out on Friday.
Any signs of a slowdown in the labor market could take pressure off the Fed to continue to raise interest rates sharply.
The S&P 500 climbed nearly 11% from mid-June to Friday’s close. Despite the rally, some investors remain concerned as September approaches, as past history shows that stocks are usually weak in September, coupled with expectations that the Fed will raise interest rates that month.
Energy stocks were up 1.54%, a bright spot, helped by a jump in crude oil prices of about 4% on possible OPEC+ production cuts and the outbreak of conflict in Libya.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow focuses on the 32455-line today. If the Dow runs steadily above the 32455-line, it will pay attention to the suppression strength of the two positions of 32781 and 32975. If the Dow runs steadily below the 32455-line, it will pay attention to the support strength of the two positions of 32083 and 31661.
Hong Kong Stocks
Fundamental Analysis:
The haze of interest rate hikes has not dispersed, and U.S. stocks have been cloudy for two consecutive days.
Hong Kong stocks opened higher, the Hang Seng Index (HSI) rose 0.2%, the Hang Seng China Enterprises Index (HSCEI) rose 0.24%, the Hang Seng TECH Index (HSTECH) rose 0.24%.
On the plate, most of the large technology stocks rose, JD.com, Inc. (9618.HK), Meituan (3690.HK) rose over 1%, Alibaba Group Holding Limited (9988.HK), Kuaishou Technology (1024.HK) rose slightly, Baidu, Inc. (9888.HK), and NetEase, Inc. (9999.HK) opened slightly lower.
Auto stocks strengthened, BYD Company Limited (1211.HK) earnings exceeded expectations and opened higher than 2%.
Domestic housing stocks, sporting goods stocks, home appliances, shipping stocks, food and beverage stocks mostly rose.
On the other hand, the recent strong education stocks partially retraced, domestic insurance stocks, beer stocks fell generally.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 focuses on the 19517-line today. If HK50 can run stably above the 19517-line, then focus on the suppression strength of the 20467 and 21450 positions. If the HK50 runs below the 19517-line, then pay attention to the support strength of the 18606 and 17535 positions.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 focuses on the 13544-line today. If the A50 runs stably below the 13544-line, pay attention to the support strength of the two positions of 13157 and 12945. If the A50 runs above the 13544-line, it will open up further upward space. At that time, pay attention to the two positions of 13887 and 14371.
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