On Thursday, the U.S. stock market closed higher, led by the technology sector. Both the S&P 500 and the Nasdaq reached new highs not seen since April 2022. The lower-than-expected U.S. June PPI index once again pointed to a cooling of inflation, further reinforcing market expectations that the Federal Reserve will soon end its rate hike actions.
U.S. Stocks
Fundamental Analysis:
In the U.S. market, the U.S. Dollar Index fell below the key level of 100, hitting a 14-month low. Expectations of a Fed rate hike cooled down, and the U.S. Dollar Index has been declining for six consecutive days.
According to the U.S. Department of Labor, the U.S. Producer Price Index (PPI) for June increased by 0.1% year-on-year, marking the smallest increase since August 2020 and falling short of the expected 0.4% and the previous value of 1.1%.
The S&P 500 Index reached the 4,500-point mark for the first time since April 2022. Large technology stocks rose collectively, with Nvidia surging nearly 5% to set new historical highs. Google rose by over 4%, while Tesla and Amazon rose by over 2%. Netflix, Meta, and Microsoft rose by over 1%, and Apple saw a slight increase. Coinbase, a cryptocurrency exchange, surged over 24% to reach a new closing high since May 6th, 2022. Electric vehicle manufacturer Nikola surged over 60%, marking the largest single-day gain since June 2020.
Technical Analysis:
(S&P 500 Index, 1-day chart)
Market Trends:
- Dow Jones Industrial Average (DJIA) rose 47.71 points, or 0.14%, closing at 34,395.14.
- Nasdaq Composite Index rose 219.61 points, or 1.58%, closing at 14,138.57.
- S&P 500 Index rose 37.88 points, or 0.85%, closing at 4,510.04.
Hong Kong Stocks
Fundamental Analysis:
In the Hong Kong stock market, there were mixed movements in the morning session. The Hang Seng Index opened higher by 184 points and reached 19,534, marking a daily high and a high point in recent months.
However, selling pressure was seen near the high point and gradually narrowed the gain to a low of 19,364, with an increase of only 13 points. Subsequently, the index expanded the gain to nearly 100 points before hovering around that level until the closing.
In terms of market performance, most large technology stocks switched from gains to losses, with Meituan (3690.HK) dropping over 1%. Xiaomi Corporation (1810.HK), Baidu, Inc. (9888.HK), Kuaishou Technology (81024.HK), and Alibaba Group Holding Limited (9988.HK) all turned negative. NetEase, Inc. (9999.HK) and Tencent Holdings Limited (0700.HK) maintained their upward momentum.
Telecommunication stocks rose, with China Unicom (Hong Kong) Limited (0762.HK) up over 6% and CHINA TELECOM (0728-OL.HK) up over 5%. International oil prices continued to rise, and the three major oil companies all increased. Automotive stocks, which had been rising continuously, performed poorly as a group.
Real estate stocks declined across the board, with Longfor Group Holdings Limited (0960.HK) Country Garden Holdings Company Limited (2007.HK), and other major stocks trending downward, leading to a decline in property management and building materials and cement stocks.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index rose 0.26%, closing at 19,399.97.
- Hang Seng Tech Index fell 0.39%.
- Hang Seng China Enterprises Index rose 0.12%.
FTSE China A50 Index
Fundamental Analysis:
In the A50 (China’s stock market) market, the Shanghai Composite Index and the Shenzhen Component Index opened higher, while the ChiNext Index opened slightly lower.
After the market opened, the Shanghai Composite Index traded sideways, the Shenzhen Component Index weakened slightly and turned negative, and the ChiNext Index fell more than 0.5%.
In terms of sector performance, internet services, software development, gaming, communication services, and cultural media had the highest gains, while photovoltaic equipment, wind power equipment, batteries, power equipment, and the power industry had the highest losses.
In terms of themes, data security, data ownership, data elements, network security, and ChatGPT concepts were active.
Technical Analysis:
(SSE Composite Index, 1-day chart)
Market Trends:
- Shanghai Composite Index rose 0.29%, closing at 3,245.71.
- Shenzhen Component Index rose 0.02%, closing at 11,097.68.
- ChiNext Index fell 0.51%, closing at 2,226.07.
- STAR 50 Index rose 0.18%, closing at 997.77.
Forward-looking Statements
This article contains “forward-looking statements” and may be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “hope”, “intend”, “may”, “might”, “plan”, “potential”, “predict”, “should”, or “will”, or other variations thereon or comparable terminology. However, the absence of such terminology does not mean that a statement is not forward-looking. In particular, statements about the expectations, beliefs, plans, objectives, assumptions, future events, or future performance of Doo Prime will be generally assumed as forward-looking statements.
Doo Prime has provided these forward-looking statements based on all current information available to Doo Prime and Doo Prime’s current expectations, assumptions, estimates, and projections. While Doo Prime believes these expectations, assumptions, estimations, and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond Doo Prime’s control. Such risks and uncertainties may cause results, performance, or achievements materially different from those expressed or implied by the forward-looking statements.
Doo Prime does not provide any representation or warranty on the reliability, accuracy, or completeness of such statements. Doo Prime is not obliged to provide or release any updates or revisions to any forward-looking statements.
Disclaimer
While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.
