U.S. Stocks
Fundamental Analysis:
The U.S. Federal Reserve Board released the minutes of its March monetary policy meeting. The minutes show that as U.S. inflation continues to be high, Fed officials, as a whole, agreed that interest rate hikes and tapering should be synchronized in the coming months.
Among them, the rate and speed of interest rate hikes may be much higher than in the past, and may reach 50 basis points several times. At the same time, the Fed is expected to start reducing its balance sheet in May, the size of up to $ 95 billion per month.
In this regard, the unprecedented scale and extremely hawkish monetary policy are likely to trigger a market reaction beyond expectations and lead the economy into a recession. As a result, leading to the U.S. stock market reflects a pattern of downward volatility.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow focuses on the 34477-line today. If the Dow runs steadily above the 34477-line, it will pay attention to the suppression strength of the 34724 and 35110 positions. If the Dow index breaks below the 34477-line, it will pay attention to the support strength of the 34088 and 33811 positions.
Hong Kong Stocks
Fundamental Analysis:
Hong Kong stocks opened lower again, with the Hang Seng Index (HSI) down by 0.65%, the Hang Seng China Enterprises Index (HSCEI) down by 0.83%, and the Hang Seng TECH Index (HSTECH) down by 1.21%.
On the market, large technology stocks continued to fall, Meituan (3690.HK) fell more than 3%, Alibaba Group Holding Limited (9988.HK), Baidu, Inc. (9888.HK), JD.com, Inc. (9618.HK) fell more than 2%, while Tencent Holdings Limited (0700.HK) fell more than 1%.
Digital health stocks led the plunge, while sporting goods stocks, dairy stocks, insurance stocks, and most of the biotechnology stocks fell. WuXi Biologics (Cayman) Inc. (2269.HK) fell 3.3%.
Brent oil fell below the $100 mark, and oil stocks fell together.
On the other hand, heavy machinery stocks performed better, with China Railway Group Limited and China Railway Construction Corporation Limited (1186.HK) both rising.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 Index focuses on the 22127-line today. If HK50 can run stably below the 22127-line, then pay attention to the support strength of 21450 and 20467. If HK50 runs above the 22127-line, then pay attention to the suppression strength of 22785 and 23294.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 pays attention to the 13983-line today. If the A50 runs steadily below the 13983-line, then pay attention to the support strength of the 13157 and 12733 positions. If the A50 runs above the 13983-line, it will open up further upward space. At that time, pay attention to the suppression of the 14669-line.
Risk Disclosure
Trading in financial instruments involves a high degree of risk due to fluctuations in the value and price of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding the investor’s initial investment could incur within a short period of time. The past performance of a financial instrument is not an indication of its future performance.
Please make sure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with us. You should seek independent professional advice if you do not understand the risks disclosed by us herein.
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.
