U.S. Stocks
Fundamental Analysis:
U.S. stocks closed higher on Wednesday, 15th February 2023, after stronger-than-expected U.S. retail sales data provided evidence of the U.S. economy’s resilience, but gains were capped as investors worried about further interest rate hikes from the Federal Reserve in the coming months.
A report from the U.S. Commerce Department showed that retail sales rose 3% in January, boosted by sales of cars and other goods, well ahead of the 1.8% increase forecast by economists polled by Reuters.
Data released on Tuesday showed that U.S. consumer prices accelerated in January, boosting expectations that the Federal Reserve will raise interest rates at least twice more this year, raising the target range for the policy rate to 5-5.25%.
The S&P 500 is up 8% so far in 2023 and the Nasdaq has climbed 15%, helped by a rebound in growth stocks that were hit hard during last year’s stock market performance slump.
Better-than-expected corporate results this earnings season provided cautious optimism.
According to Refinitiv, more than half of the S&P 500 component companies have reported results, with nearly 70 percent of profits exceeding expectations. The long-term average is 66%.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow pays attention to the 34221-line today. If the Dow runs stably above the 34221-line, then pay attention to the suppression strength of the 34477 and 34724 positions.
Hong Kong Stocks
Fundamental Analysis:
Judging from yesterday’s market, the market trend is relatively sluggish, and the Hang Seng Index (HSI) lost the 21,000-point mark and hit the lowest closing point since 4th January this year.
The current economy is in the stage of weak recovery, the market has strong expectations, weak reality of the situation.
The weak Hong Kong dollar finally triggered the weak exchange rate guarantee, and the Hong Kong Monetary Authority entered the market for the first time in three months, taking HKD 4.223 billion in sales to defend Hong Kong’s linked exchange rate system.
At present, Hong Kong stocks entered the vacuum period of mainland economic data, the market’s attention will focus on corporate earnings forecasts, Hong Kong stocks are expected to consolidate at the recent lows for a period of time, waiting for the verification of fundamentals.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 pays attention to the 21450-line today. If HK50 can run stably above the 21450-line, then pay attention to the suppression strength of the two positions of 22127 and 22785.
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