U.S. Stocks
Fundamental Analysis:
U.S. stocks closed higher on Wednesday, 25th May 2022, after minutes from the Federal Reserve’s most recent monetary policy meeting showed that policymakers agreed that the U.S. economy is very strong and that the Fed is working to keep inflation under control without triggering a recession.
The Fed raised its benchmark overnight interest rate by 50 basis points in May for the first time in more than 20 years. The minutes showed that “most members present” believe that further rate increases by the same margin “may be appropriate” in the June and July policy meetings.
Earlier in the day, the three major U.S. stock indexes were shaky, with growing tensions over business and consumer surveys, economic data and corporate earnings reports indicating that the U.S. economy is cooling, while the Federal Reserve is preparing to throw cold water on the economy in response to inflation, which is at its highest level in decades.
These concerns are fueled by fears that the Fed’s overly aggressive rate hikes could push the economy into recession, despite evidence that inflation topped out in March.
By the close of trading, the Dow Jones Industrial Average rose 191.66 points, or 0.6%, to 32,120.28, the S&P 500 rose 37.25 points, or 0.95%, to 3,978.73, and the Nasdaq rose 170.29 points, or 1.51%, to 11,434.74.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow focuses on the 32083-line today. If the Dow runs stably above the 32083-line, it will pay attention to the suppression strength of the 32455 and 32781 positions. If the Dow falls below the 32083-line, it will pay attention to the support strength of the 31661 and 31291 positions.
Hong Kong Stocks
Fundamental Analysis:
Hong Kong stocks opened higher, with the Hang Seng Index (HSI) opening up 0.5% and the ang Seng TECH Index (HSTECH) opening up 0.48%. Shortly after the opening, the HSI and the Hang Seng Technology Index both turned down. HSI fell more than 1%, again lost 20,000 points, while Hang Seng Technology Index fell more than 2%, losing 4,000 points.
On the market, technology stocks were lower, with new energy auto stocks leading the decline. In terms of individual stocks, Alibaba Health Information Technology Limited (0241.HK) once rose nearly 4% and is now down 0.26%.
On the news, Ali Health announced that annual revenue rose 32.6% to 20.58 billion yuan, and Ganfeng Lithium Co., Ltd. (1772.HK) rose nearly 2%. Ganfeng Lithium announced that it intends to invest up to 2 billion yuan with its own funds to build an annual output of 50,000 tons of lithium new energy materials project.
On the other hand, Great Wall Motor Company Limited (2333.HK) fell more than 5%, XPeng Inc. (9868.HK) fell more than 4%, Geely Automobile Holdings Limited (0175.HK) fell nearly 4%, Li Auto Inc. (2015.HK) fell more than 3%, and NIO Inc. (9866.HK) fell nearly 3%.
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 pay attention to the suppression strength of the 20467 and 21450 positions. If the 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 focuses on the 13157-line today. If the A50 runs steadily below the 13157-line, it will pay attention to the support strength of the two positions of 12733 and 12328. If the A50 runs above the 13157-line, it will open up further upward space. At that time, pay attention to the two positions of 13496 and 13983.
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