S&P 500 Closed Higher, H.K. Major Indices Set New Highs

2023-01-05 | Daily Analysis ,Daily Insight ,Securities

U.S. Stocks 

Fundamental Analysis: 

The S&P 500 closed higher on Wednesday, 4th January 2022, but not as high as its intraday high, after the Federal Reserve released minutes from its last meeting in choppy trading.

The minutes showed officials were highly focused on controlling inflation, even as they agreed to slow the pace of rate hikes.

At the Fed’s 13th – 14th December 2022 policy meeting, officials agreed the Fed should continue to raise the cost of credit to control the pace of price increases, but to move forward gradually to limit risks to economic growth.

Among the 11 major S&P sectors, the energy sector closed up 0.06%, the weakest performance, while the real estate sector was the strongest performer, closing up 2.3%, followed by the materials sector up 1.7%.

The market now sees a 68.8% chance that the Fed will raise rates by 25 basis points in February, but still sees rates peaking at just under 5% by June.

Data earlier in the day showed that U.S. job openings in November indicated the labor market remained tight, giving the Fed reason to stick with its monetary tightening actions for a longer period, while other data showed further contraction in manufacturing in December.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow today pays attention to the 33233-line. If the Dow runs stably above the 33233-line, then pay attention to the suppression strength of the 33390 and 33584 positions.

Hong Kong Stocks 

Fundamental Analysis: 

U.S. stocks rose overnight, with the Chinese index jumping nearly 9%.

Hong Kong stocks opened strongly higher, with the three major indexes setting new highs again.

The Hang Seng Index (HSI) rose 2.42%, the Hang Seng China Enterprises Index (HSCEI) rose 2.47%, the Hang Seng TECH Index (HSTECH) rose 3.13%.

On the market, large technology stocks across the board, JD.com, Inc. (9618.HK) rose 7%, Alibaba Group Holding Limited (9988.HK) rose 6%, Tencent Holdings Limited (0700.HK) rose more than 4%, Meituan (3690.HK), Kuaishou Technology (1024.HK, Baidu, Inc. (9888.HK), and NetEase, Inc. (9999.HK) are up.

Auto stocks pulled up collectively, with new energy vehicles, NIO Inc. (9866.HK), XPeng Inc. (9868.HK), Li Auto Inc. (2015.HK) leading.

Internet medical stocks, sports stocks, domestic banking stocks, e-cigarette concept stocks, gambling stocks, etc. were all up.

On the other hand, the car dealership stock China MeiDong Auto Holdings Limited (1268.HK) counter trend plunged more than 9%, gas stocks, auxiliary reproduction stocks fell significantly, China Resources Gas Group Limited (1193.HK) fell 5%.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 pays attention to the 20467-line today. If HK50 can run stably above the 20467-line, then pay attention to the suppression strength of the two positions of 21450 and 22127.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 pays attention to the 13339-line today. If A50 runs stably below the 13339-line, pay attention to the support strength of the 12900 and 12659 positions. If the A50 runs above the 13339-line, it will open up further upside space.

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