U.S. Stocks
Fundamental Analysis:
U.S. stocks closed slightly lower in choppy trading Wednesday, 22nd June 2022, with the S&P 500 down 0.13%, dragged down by energy stocks as investors digested comments from Federal Reserve Chairman Jerome Powell that the Fed’s goal is to lower inflation.
After opening lower, major U.S. stock indexes turned higher after Powell testified before the Senate Finance Committee, but then turned higher and lower again before the close.
Powell said the Fed is “determined” to reduce inflation, which is at a 40-year high, while policymakers are not trying to trigger a recession in the process. Investors are trying to assess when the stock market will bottom out, as they weigh the risks posed to the economy by the Fed’s interest rate hikes to curb soaring inflation.
Earlier this month, the S&P 500 fell more than 20% from its all-time high touched in January, confirming it was in a bear market, and last week the index recorded its biggest one-week percentage drop since March 2020.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow focuses on the 30608-line today. If the Dow runs steadily below the 30608-line, it will pay attention to the support strength of the two positions of 30083 and 29767. If the Dow runs steadily above the 30608-line, it will pay attention to the suppression strength of the two positions of 31000 and 31291.
Hong Kong Stocks
Fundamental Analysis:
Powell hinted at the possibility of a recession, and U.S. stocks rushed higher to close lower overnight.
Hong Kong stocks opened higher, the Hang Seng Index (HSI) rose 0.71%, the Hang Seng China Enterprises Index (HSCEI) rose 0.85%, the Hang Seng TECH Index (HSTECH) rose 1.23%.
On the plate, the Central Comprehensively Deepening Reforms Commission set the platform economic reform. At the same time, large technology stocks generally opened higher, Alibaba Group Holding Limited (9988.HK) rose 3.35%, Xiaomi Corporation (1810.HK), NetEase, Inc. (9999.HK) rose more than 2%, JD.com, Inc. (9618.HK), Baidu, Inc. (9888.HK), and Tencent Holdings Limited (0700.HK) are up.
State Council meeting pointed out that it is necessary to further unleash the potential of auto consumption, auto stocks across the board, XPeng Inc. (9868.HK), Li Auto Inc. (2015.HK) and other new energy vehicles perform better as the Li Auto’s L9 listed on the first day orders burst.
Meanwhile, e-cigarette concept stocks, biotechnology stocks, coal stocks, port shipping stocks rose.
On the other hand, property management stocks fell the most, Shimao Group Holdings Limited (0813.HK) resumed falling 10%. Internet medical stocks continued to fall, gas stocks, cement stocks fell in general.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 focuses on the 20614-line today. If HK50 can run stably above the 20614-line, then pay attention to the suppression strength of the 21450 and 22127 positions. If the HK50 runs below the 20614-line, then pay attention to the support strength of the 19517 and 18606 positions.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 focuses on the 14352-line today. If the A50 runs steadily below the 14352-line, it will pay attention to the support strength of the two positions of 13970 and 13544. If the A50 runs above the 14352-line, it will open up further upward space. At that time, pay attention to the two positions of 14695 and 14985.
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