U.S. Stocks
Fundamental Analysis:
U.S. stock indexes rebounded on Monday, 12th December 2022, to start the week’s trading solid, helped in part by gains in Microsoft and Pfizer, as investors prepare for Tuesday’s inflation data and the Federal Reserve’s policy decision later in the week.
Microsoft rose 2.89% after the company said it would buy a 4% stake in London Stock Exchange Group (LSE), giving a boost to all three major stock indexes.
After strong gains in October and November, the S&P 500 index stumbled in December and suffered its biggest single-week percentage drop in nearly three months, with mixed economic data fueling recession fears.
Consumer inflation data to be released on Tuesday is closely watched, with prices expected to rise 7.3% year-on-year in November, slowing from 7.7% in the previous month, and “core” inflation, net of food and energy, expected to be 6.1%, compared with 6.3% in the previous month.
The three major stock indexes recorded the largest one-day percentage gains since November 30, with all 11 major sectors of the S&P 500 closing higher.
Pfizer rose 0.85% after the company reported revenue estimates for various vaccines.
A weaker-than-expected inflation reading would help support the view that the Fed’s aggressive policy actions to slow the economy this year are working.
The market is widely expected to see the Fed raise rates by 50 basis points on Wednesday, which would mark a slowdown in the pace of rate hikes after 75 consecutive basis point increases in the last four meetings.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow today pays attention to the 33949-line. If the Dow runs stably above the 33949-line, then pay attention to the suppression strength of the two positions of 34221 and 34477.
Hong Kong Stocks
Fundamental Analysis:
Hong Kong stocks morning session of the three major indices significantly higher.
The Hang Seng TECH Index (HSTECH) once rose more than 2% during the day, closing up 0.67% at noon, the Hang Seng Index (HSI), the Hang Seng China Enterprises Index (HSCEI) rose 0.56% and 0.64% respectively.
The half-day net southbound capital inflow was HK$ 4.3 billion, the market turnover was HK$ 68.6 billion.
On the market, large technology stocks that fell at the opening turned up one after another, Kuaishou Technology (1024.HK) rose by more than 4%, Meituan (3690.HK) rose about 3%, Xiaomi Corporation (1810.HK), Tencent Holdings Limited (0700.HK), Alibaba Group Holding Limited (9988.HK), Baidu, Inc. (9888.HK) are up; longing for customs clearance.
Hong Kong local real estate and rent stocks strengthened across the board, restaurant stocks are active again led by the rise, the gaming stocks, port shipping stocks, aviation stocks, sporting goods stocks all up.
On the other hand, the previous surge in pharmaceutical stocks lower, Internet medical stocks fell significantly, the performance of domestic housing stocks and property management stocks withered.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 pays attention to the 18606-line today. If HK50 can run stably above the 18606-line, then pay attention to the suppression strength of the two positions of 19517 and 20467.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 pays attention to the 12900-line today. If A50 runs stably below the 12900-line, pay attention to the support strength of the two positions of 12659 and 12273. If A50 runs above the 12900-line, it will open up further upside space.
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