U.S. Stocks
Fundamental Analysis:
U.S. stocks were largely flat on Monday, 8th August 2022, with strong U.S. jobs data last week reinforcing expectations that the Federal Reserve will crack down on inflation, while chipmaker Nvidia issued a revenue warning reminding investors that the U.S. economy is slowing.
Stocks retreated from earlier highs after last week’s strong labor market report was initially seen as a sign that the economy could withstand an aggressive Fed rate hike to curb inflation, which is at a four-decade high.
Investors now await the consumer price data to be released on Wednesday to determine whether the Fed may slightly reduce anti-inflationary efforts to provide a better basis for economic growth.
U.S. interest rate futures expect a 67.5% chance of a 75 basis point rate hike at the Fed’s next meeting in September, compared with about 41% before the labor market data was released.
Information technology stocks fell 0.9%, with chipmaker Nvidia plunging 6.3% after the company said it expects revenue in the second quarter to fall 19% from the previous quarter to about $6.7 billion due to weakness in its gaming business.
The Philadelphia Stock Exchange Semiconductor Index fell 1.6%, while the Value-Stocks Index rose 0.1% and the Growth-Stocks Index fell 0.4%.
Tesla rose 0.8% after the company signed contracts worth about $5 billion to buy battery materials from nickel processors in Indonesia, CNBC reported.
U.S. auto stocks jumped on Sunday after the U.S. Senate passed a $430 billion bill to fight climate change, creating a $4,000 tax credit for used electric vehicles and providing billions of dollars in support funding for electric vehicle production.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow is focused on the 32781-line today. If the Dow runs steadily above the 32781-line, it will pay attention to the suppression strength of the two positions of 32975 and 33233. If the Dow runs steadily below the 32781-line, it will pay attention to the support strength of the two positions of 32455 and 32083.
Hong Kong Stocks
Fundamental Analysis:
Overnight the three major U.S. stock indexes were mixed, Hong Kong stocks opened slightly lower, the Hang Seng Index (HSI), the Hang Seng China Enterprises Index (HSCEI) opened slightly lower by 0.03%, and the Hang Seng TECH Index (HSTECH) fell 0.21%.
On the market, yesterday’s low large technology stocks partially rebounded, Alibaba Group Holding Limited (9988.HK) rose 1.35%, Tencent Holdings Limited (0700.HK), Meituan (3690.HK) opened slightly higher, JD.com, Inc. (9618.HK) fell more than 2%, Kuaishou Technology (1024.HK), and NetEase, Inc. (9999.HK) opened lower.
Biotechnology stocks strengthened significantly, domestic housing stocks and property management stocks partially rebounded.
News that the iPhone 14/Pro series of new machine stocking expanded to 95 million, Apple concept stocks generally opened higher, Sunny Optical Technology (Group) Company Limited (2382.HK) performed better.
On the other hand, photovoltaic stocks, power stocks, gas stocks fell collectively, oil stocks, Hong Kong local bank stocks fell in general. China Unicom (Hong Kong) Limited (0762.HK rose nearly 3% after the performance.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 focuses on the 20467-line today. If HK50 can run stably above the 20467-line, then pay attention to the suppression strength of 21450 and 22127. If HK50 runs below the 20467-line, then pay attention to the support strength of 19517 and 18606.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 focuses on the 13887-line today. If the A50 runs stably below the 13887-line, pay attention to the support strength of the two positions of 13544 and 13157. If the A50 runs above the 13887-line, it will open up further upward space. At that time, pay attention to the two positions of 14371 and 14695.
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