U.S. Stocks
Fundamental Analysis:
The three major U.S. stock indexes closed higher on Wednesday, 21st December 2022, their biggest one-day gains so far in December, helped by upbeat quarterly earnings reports from Nike and FedEx, as well as improved consumer confidence and lower inflation expectations among investors.
Nike surged 12% as strong holiday demand from North American consumers led to a second-quarter profit that beat expectations. FedEx closed up 3.4%.
Cruise operator Carnival jumped 4.7% after reporting a lower-than-expected quarterly loss.
FedEx announced earnings estimates and a $1 billion cost-cutting plan, which triggered a market sell-off after the company withdrew its earnings estimates in September.
Separately, U.S. consumer confidence rose to an eight-month high in December as inflation eased and the labor market remained strong, with 12-month inflation expectations falling to 6.7%, the lowest since September 2021.
Energy stocks rose 1.89%, the largest gain among the S&P’s 11 largest sectors, as crude oil futures rose.
The smallest sector gainer was consumer discretionary stocks, which closed up 0.8%.
However, Wednesday’s data also showed that U.S. home sales fell 7.7% to a two-and-a-half-year low in November as the housing market was hit by climbing mortgage rates.
But the data may have fueled investor hopes that the U.S. Federal Reserve may ease tightening.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow pays attention to the 33390-line today. If the Dow runs stably above the 33390-line, then pay attention to the suppression strength of the 33584 and 33949 positions.
Hong Kong Stocks
Fundamental Analysis:
Overnight, U.S. stock rally and the policy was positive. The three major indices of Hong Kong stocks closed sharply higher at noon.
The Hang Seng Index (HSI) rose 2.76% intraday once on 19,700 points, the Hang Seng China Enterprises Index (HSCEI) rose 3.23%, the Hang Seng TECH Index (HSTECH) rose 4.6%, up more than 5% intraday.
The half-day net southbound capital inflow was HK$2.789 billion, the market turnover was HK$57.7 billion.
On the market, the China Securities and Futures Commission issued a heavy favorable news, and large technology stocks exploded.
Bilibili Inc. (9626.HK) rose 10%, JD.com, Inc. (9618.HK) rose 6%, Meituan (3690.HK), Baidu, Inc. (9888.HK) rose 5%, Alibaba Group Holding Limited (9988.HK) rose 4%, Tencent Holdings Limited (0700.HK) rose 3%.
Consumer stocks counter-attacked across the board, including restaurant stocks rose sharply, many places in Beijing open dine-in, Xiabuxiabu Catering Management (China) Holdings Co., Ltd. (0520.HK) up 14%, Haidilao International Holding Ltd. (6862.HK) rose 8%.
Nike results exceeded expectations and the subject of consumer recovery by hot speculation, sporting goods stocks rose sharply, Li Ning Company Limited (2331.HK) rose 6%.
The market is looking forward to the normalization of cross-border travel between China and Macau, and gaming stocks were active.
The central bank, and the China Securities and Futures Commission once again voiced their support for the real estate market, and domestic housing stocks rose collectively, with Ronshine China Holdings Limited (3301.HK) rising by 22%.
In addition, auto stocks, medical outsourcing stocks, Hong Kong retail stocks, holiday concept stocks, dairy stocks, tobacco stocks, beer stocks and many other stocks rose collectively.
On the other hand, a few stocks such as gold stocks and steel stocks weakened.
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, then 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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