U.S. Stocks
Fundamental Analysis:
The S&P 500 index of U.S. stocks closed lower on Friday, 17th February 2023, dragged down by Microsoft and Nvidia, as markets worried that inflation and a strong U.S. economy could leave the Federal Reserve ready to raise interest rates further.
Last week’s economic data showed that inflation remains high, the job market is tight and consumer spending is resilient, giving the Fed more room to raise interest rates.
Goldman Sachs and Bank of America forecast three more rate hikes of 25 basis points each this year, after the two banks previously estimated two rate hikes.
The market expects at least two more rate hikes and believes the Fed rate will peak at 5.3% by July, as the Fed tries to cool the economy and push inflation back down.
Six of the 11 sectors in the S&P 500 rose, with the essential consumer goods sector up 1.29%, followed by the utilities sector, up 1%.
The energy sector plunged 3.65%, with Exxon Mobil down 3.8%.
Federal Reserve Governor Jerome Bowman said the Fed has more work to do in raising interest rates to drive down high inflation, and recent data suggest that the impact of the Fed’s actions so far has not been large enough.
This has fueled concerns about monetary policy.
Balkin, chairman of the Federal Reserve Bank of Richmond, also said on Friday on a separate occasion that the Fed needs to continue to raise interest rates, but noted that he would prefer to stick to a slower pace, raising rates 25 basis points at a time and then deciding on a higher or lower stopping point than expected as the path of inflation becomes clearer.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow pays attention to the 33584-line today. If the Dow runs stably above the 33584-line, then pay attention to the suppression strength of the 33949 and 34221 positions.
Hong Kong Stocks
Fundamental Analysis:
Last week, Hong Kong stocks continued to retreat, the three major indices fell again.
The Hang Seng Index (HSI) fell 0.19%, the Hang Seng China Enterprises Index (HSCEI) fell 0.22%, and the Hang Seng TECH Index (HSTECH) fell 0.22%.
On the plate, large technology stocks fell in general, JD.com, Inc. (9618.HK) fell 1%, Kuaishou Technology (1024.HK), Alibaba Group Holding Limited (9988.HK), Tencent Holdings Limited (0700.HK), Xiaomi Corporation (1810.HK) are down, while NetEase, Inc. (9999.HK), and Meituan (3690.HK) rose slightly.
Lithium stocks, and domestic insurance stocks fell across the board, while domestic housing stocks and property management stocks setback.
Film and entertainment stocks, Alibaba Pictures Group Limited (1060.HK) fell nearly 2%.
On the other hand, the full registration system opened, Chinese brokerage stocks partially rose, biopharmaceutical stocks rose significantly, Clover Biopharmaceuticals, Ltd. (2197.HK) opened more than 9% higher, the company’s quadrivalent seasonal flu vaccine reached an exclusive commercialization agreement in China.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 pays attention to the 21450-line today. If HK50 can run stably above the 21450-line, then pay attention to the suppression strength of the two positions of 22127 and 22785.
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