Due to the Independence Day holiday, US stocks market closed on Thursday, July 4. The US dollar fell for the third consecutive trading day as trading volume remained light with the nation celebrating Independence Day.

Federal Reserve Chairman Jerome Powell stated earlier this week that inflation is returning to a downward trajectory. Employment data released on Wednesday indicated a slowing US job market. A more relaxed monetary policy could boost the overall economy and increase demand for industrial metals like copper.

US Stocks

US markets are closed on July 4th for the Independence Day holiday.

Hong Kong Stock Market

Fundamental Analysis: 

Hong Kong’s three major indexes opened higher but closed lower. Tech stocks mostly declined, with Lenovo, Xiaomi, Kuaishou, and Baidu all dropping over 1%.

New energy vehicle stocks adjusted collectively, with Leapmotor and XPeng falling over 4%, and Li Auto down more than 3%.

Gold stocks led gains, with Zhaojin Mining rising over 2%. Building materials and cement stocks were active, with China Resources Building Materials Technology surging nearly 7%.

Gold stocks mostly rose, with Zhaojin Mining up over 2%. Spot gold prices climbed above $2,360 per ounce, gaining more than 1.5% for the week.

Market analysts suggest that the cooling US labor market may signal increased risks of economic slowdown, bolstering expectations for early Fed rate cuts, which in turn supported gold prices.

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index: down 1.09%, closing at 17,832.38 points
• Hang Seng Tech Index: down 1.83%, closing at 3,583.06 points
• Hang Seng China Enterprises Index: down 1.27%, closing at 6,388.95 points

FTSE China A50 Index

Fundamental Analysis: 

A-shares saw broad declines with all three major indexes dropping. The Shanghai Composite Index fell 0.93%, led by gains in precious metals and cultural media sectors.

Cultural media, precious metals, traditional Chinese medicine, gaming, Sora concept, Web3.0, and digital taxation sectors led gains. Components, motors, banks, semiconductors, consumer electronics, humanoid robots, PCB concepts, and PEEK materials led losses.

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index: down 0.93%, closing at 2,929.98 points
• Shenzhen Component Index: down 0.52%, closing at 8,628.95 points
• ChiNext Index: down 0.25%, closing at 1,643.18 points

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