U.S. Stocks
Fundamental Analysis:
U.S. stocks closed sharply lower on Wednesday, 9th November 2022, as Republican gains in the midterm elections appeared smaller than some had expected, and markets also focused on upcoming inflation data to gauge the magnitude of future interest rate hikes.
The major stock indexes extended their losses in response to a poor bid for 10-year U.S. Treasury bonds, causing Treasury yields to climb further.
It is still believed that Republicans will win control of the House of Representatives, but the race in key states is too close to call, and better-than-expected Democratic performance dampened the prospects of a red wave of Republican victories.
Disney plunged 13%, its biggest one-day loss since 2001, after the company said its efforts to enter the streaming video space were causing more losses.
That also hit market sentiment.
Tesla fell 7.2%, hitting a two-year low, after the company’s chief executive, Musk, disclosed late Tuesday that he sold $3.95 billion worth of Tesla stock.
Just days earlier, he had closed a deal to buy Twitter for $44 billion.
Clean energy stocks, which typically benefit under Democratic leadership, rose, and Wednesday’s decline put a halt to a three-day rally in the S&P 500, which has gained nearly 3% in that time.
With the outcome of the election still uncertain, the market turned its attention to October inflation data due Thursday, which could provide more clues as to whether the Federal Reserve may soften its aggressive stance on rate hikes.
Facebook parent company Meta Platforms jumped about 5% after the company said it was cutting 13%, or more than 11,000 employees, in one of the biggest layoffs at tech companies this year.
The hamburger chain Wendy’s rose 3% after the company reported quarterly sales and earnings that beat expectations.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow is concerned about the 32363-line today. If the Dow runs steadily above the 32363-line, then it will pay attention to the suppression strength of the two positions of 32975 and 33390. If the Dow runs steadily below the 32363-line, it will pay attention to the support strength of the two positions of 31863 and 31566.
Hong Kong Stocks
Fundamental Analysis:
Affected by the overnight stock market declines in Europe and the United States, Hong Kong stocks opened lower across the board.
The Hang Seng Index (HSI) fell 1.35%, the Hang Seng China Enterprises Index (HSCEI) fell 1.45%, the Hang Seng TECH Index (HSTECH) fell 2.39% narrowly defending 3200 points.
On the market, large technology stocks setback, Sunny Optical Technology (Group) Company Limited (2382.HK) fell more than 6%, leading the blue chips.
Tencent Holdings Limited (0700.HK), Kuaishou Technology (1024.HK), Alibaba Group Holding Limited (9988.HK) fell more than 3%, Meituan (3690.HK), JD.com, Inc. (9618.HK), and NetEase, Inc. (9999.HK) are down more than 2%.
Automotive stocks fell more than, new energy vehicles NIO Inc. (9866.HK) led lower, falling more than 10%.
Cell phone concept stocks, shipping stocks, photovoltaic stocks, restaurant stocks fell in general.
Recently strong non-ferrous metal stocks retreated collectively.
On the other hand, the concept of anti-epidemic stocks, CanSino Biologics Inc. (6185.HK) opened a sharp 7% higher.
Retail stocks and Hong Kong local stocks rose partly, Wharf Real Estate Investment Company Limited (1997.HK) opened up 1%.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 focuses on the 15995-line today. If HK50 can run stably above the 15995-line, then focus on the suppression strength of the 16964 and 17535 positions. If the HK50 runs below the 15995-line, then pay attention to the support strength of the 15136 and 14309 positions.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 focuses on the 11665-line today. If the A50 runs stably below the 11665-line, then pay attention to the support strength of the two positions of 11447 and 11220. If the A50 runs above the 11665-line, it will open up further upward space. At that time, pay attention to the two positions of 12336 and 12659.
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