On January 15th (Monday), the U.S. observed “Martin Luther King Jr. Day,” resulting in a one-day closure of the stock market. Normal trading resumed on January 16th (Tuesday).
Amidst the closure, U.S. stock index futures remained stable, with both the stock and bond spot markets taking a hiatus for the public holiday. A minor uptick was noted in the U.S. dollar index.
Benoit Péloille, Chief Investment Officer at Natixis Wealth Management, emphasized a noteworthy shift, stating, “We are currently in a phase where bad economic news no longer translates into good news for the stock market.”
In the U.S., he expressed skepticism about the market’s ability to interpret as many as six 25-basis-point rate cuts, suggesting that persistent negative economic news might start causing damage.
U.S. Stock Market
Fundamental Analysis:
January 15th marked “Martin Luther King Jr. Day,” leading to the closure of the U.S. stock market.
Hong Kong Stock Market
Fundamental Analysis:
In Hong Kong, the three major indices experienced fluctuations after an initial surge.
Notably, most tech stocks recorded declines, with Meituan witnessing a dip of over 3%.
JD.com and Tencent followed suit, each falling nearly 3%. Xiaomi, Alibaba, and Kuaishou registered drops exceeding 2%. Baidu, however, defied the trend, securing an approximate 1.5% increase.
In terms of sectors, real estate stocks spearheaded the declines, with Sunac China plummeting over 8%.
The automotive sector also faced a notable downturn, with XPeng dropping nearly 4%.
Internet healthcare stocks collectively experienced a downturn, with JD Health witnessing a dip of over 6%.
Music entertainment company, Lai Fung Entertainment, took a substantial hit, plummeting over 74%.
Baidu rebounded, registering an increase of approximately 1.5%. A Daiwa report shed light on rumors linking Baidu’s Wenxin Yiyu big model and iFlytek’s Starfire to mainland military use. The speculations led to a significant 9% drop in Baidu’s U.S. stock price last Friday (12th).
Baidu clarified the situation, emphasizing no collaboration or affiliation with the research lab. The report suggested that Questmobile data indicates Wenxin Yiyu and Starfire boast the highest daily users, indicating potential widespread use of commercial big models.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index (HSI) fell by 1.92%, closing at 15,904.39 points.
- Hang Seng Tech Index (HSTECH) dropped by 2.34%, closing at 3,324.34 points.
- Hang Seng China Enterprises Index (HSCEI.) declined by 1.85%, closing at 5,345.66 points.
FTSE China A50 Index
Fundamental Analysis:
A-shares’ three major indices began on a low note, experienced a rebound in the initial half-hour, turned positive one after another, but soon entered a low-volatility downturn.
The ChiNext Index fell by nearly 1% in the morning.
In industry sectors, only tourism, hotels, airports, banks, insurance, and photovoltaic equipment saw increases, while securities, diversified finance, and wind power equipment faced relatively small declines.
Notably, real estate services, automotive services, gaming, petroleum, and decoration industries encountered significant downturns.
Technical Analysis:
(SSE Composite Index, 1-day chart)
Market Trends:
- Shanghai Composite Index (SHCOMP) dropped by 0.62%, closing at 2,868.3 points.
- Shenzhen Component Index (SZCOMP) fell by 0.73%, closing at 8,898.14 points.
- ChiNext Index (CHINEXT) dropped by 0.89%, closing at 1,730.02 points
- SSE STAR Market 50 Index (SSE50) declined by 0.77%, closing at 767.43 points.
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