U.S. Stocks
Fundamental Analysis:
All three major U.S. stock indexes plunged more than 3% on Friday, 26th August 2022, after Federal Reserve Chairman Jerome Powell signaled that the Fed would continue to raise interest rates to curb inflation, dashing some investors’ hopes for a slower path of rate hikes.
The Nasdaq led the decline, its worst one-day performance since 16th June 2022, weighed down by heavy losses in high-growth technology stocks.
The stocks had surged a day earlier as they awaited Powell’s speech at a central bank seminar in Jackson Hole, Wyoming.
Powell warned on Friday that there is no quick fix for surging prices and that tight monetary policy will need to be maintained “for a while” until inflation is under control, meaning growth will slow, the job market will soften, and households and businesses will endure “some pain. “.
Investors know there will be further rate hikes in the future, but they are divided on whether the Fed will raise rates by 75 basis points next month, or 50 basis points.
However, recently released data highlighting the continued strength of the labor market will offset the impact of two consecutive quarters of negative economic growth, driving some speculation that the pace of interest rate hikes may be slowed.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow focuses on the 32455-line today. If the Dow runs steadily above the 32455-line, it will pay attention to the suppression strength of the two positions of 32781 and 32975. If the Dow runs steadily below the 32455-line, it will pay attention to the support strength of the two positions of 32083 and 31661.
Hong Kong Stocks
Fundamental Analysis:
U.S. Federal Reserve Chairman Jerome Powell released “hawkish” remarks on Friday, which caused global stock markets to fall.
Hong Kong stocks opened lower in the morning session, the Hang Seng Index (HSI) fell slightly by 0.7% to hold 20,000 points, the Hang Seng China Enterprises Index (HSCEI) fell 0.64%, the Hang Seng TECH Index (HSTECH) fell 0.91%.
The half-day net inflow of southbound capital inflow was HK$2.103 billion, and the market turnover was HK$52.1 billion.
On the market, most of the large technology stocks fell, Bilibili Inc. (9626.HK) fell nearly 4%, NetEase, Inc. (9999.HK) fell 1%, Tencent Holdings Limited (0700.HK), JD.com, Inc. (9618.HK), Alibaba Group Holding Limited (9988.HK) weakened, Meituan (3690.HK) rose more than 4% after the performance, while Baidu, Inc. (9888.HK), and Kuaishou Technology (1024.HK) are up.
BDI fell to the lowest in more than two years, and shipping stocks fell.
The first July lucky gaming tax revenue fell more than 37% year-on-year, gaming stocks fell generally.
Tobacco concept stocks, gold stocks, gas stocks fell sharply; banking stocks, domestic housing stocks, the domestic housing stocks and other stocks weakened.
In addition, education stocks rose, the Koolearn Technology Holding Limited (1797.HK) after the performance rose 5.3%, tourism stocks higher, China Travel International Investment Hong Kong Limited (0308.HK) rose 4.8%.
Chinese medicine, wind power, infrastructure stocks were collectively strong.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 focuses on the 19517-line today. If HK50 can run stably above the 19517-line, it will pay attention to the suppression strength of the 20467 and 21450 positions. If the HK50 runs below the 19517-line, it will pay attention to the support strength of the 18606 and 17535 positions.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 focuses on the 13544-line today. If the A50 runs stably below the 13544-line, pay attention to the support strength of the two positions of 13157 and 12945. If the A50 runs above the 13544-line, it will open up further upward space. At that time, pay attention to the two positions of 13887 and 14371.
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