U.S. Stocks
Fundamental Analysis:
Nasdaq closed lower on Tuesday, 9th August 2022, after a poor forecast from Micron Technology dragged chipmakers and technology stocks lower, as investors awaited U.S. inflation data that could lead the Federal Reserve to further ramp up its efforts to curb inflation.
Wednesday’s high inflation data could prevent the Fed from slowing the pace of rate hikes soon after last week’s jobs report blew up, hampering the market’s rebound from mid-June lows.
The market sees a 68.5% chance that the Fed will raise rates by 75 basis points in September, which would be its third consecutive sharp rate hike.
Tuesday’s data showed that unit labor costs accelerated in the second quarter, suggesting that strong wage pressures will help keep inflation up, fueling fears of a tight labor market and runaway inflation.
The Labor Department said unit labor costs, the price of labor per unit of output, rose at a 10.8% rate, compared with a 12.7% rate in the first quarter.
Shares of U.S. vaccine maker Novavax plunged 29.6% after President Joe Biden signed a landmark bill on Tuesday providing $52.7 billion in subsidies for semiconductor production and research in the U.S.
The company cut its annual revenue forecast in half and does not expect sales of its Covid vaccine in the U.S. to increase again this year amid a global supply glut and weak demand.
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:
The U.S. President signed the Chip and Technology Act of 2022. The declining chip stocks overnight caused the three major U.S. stock indexes to fall altogether.
Hong Kong stocks opened lower, the Hang Seng Index (HSI) fell 0.23%, the Hang Seng China Enterprises Index (HSCEI) fell 0.25%, and the Hang Seng TECH Index (HSTECH) fell 0.31%.
On the market, most of the large technology stocks fell, JD.com, Inc. (9618.HK) fell 2%, Meituan (3690.HK), Alibaba Group Holding Limited (9988.HK), Baidu, Inc. (9888.HK), Meituan was lower, NetEase, Inc. (9999.HK), Tencent Holdings Limited (0700.HK) rose slightly.
Photovoltaic stocks, semiconductor stocks, gas stocks, sporting goods stocks partially rose.
On the other hand, auto stocks fell significantly, drug stocks, domestic insurance stocks, domestic banking stocks were mostly lower.
Li Auto Inc. (2015.HK) fell 4.57% and NIO Inc. (9866.HK) dropped 3.8%.
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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