U.S. Stocks
Fundamental Analysis:
U.S. stocks closed lower on Friday, 9th December 2022, as investors assessed economic data and awaited the Federal Reserve’s policy meeting next week, at which a 50 basis point rate hike is likely.
Data showed that U.S. producer prices rose slightly more than expected in November amid a jump in the cost of services, but that trend is moderating, with the producer price index (PPI) posting the smallest gain in a year and a half.
The market expects the Fed to have a 77% chance of raising rates by 50 basis points this week and a 23% chance of raising rates by 75 basis points, with little change in these possibilities following Friday’s economic data release.
Next Tuesday’s release of November consumer price data will provide new clues to the Fed’s monetary tightening program.
Of the 11 sectors in the S&P 500, 10 fell, led by energy stocks, which fell 2.33%, followed by health care stocks, which fell 1.28%.
The energy stock index closed lower for the seventh straight session, the longest losing streak since December 2018, as oil prices trended lower on a weekly basis on recession concerns.
Major Wall Street indices fell last week after two consecutive weeks of gains.
The economy could fall into recession next year as the Federal Reserve continues to raise interest rates.
For the week, the S&P 500 fell 3.4%, the Dow fell 2.8% and the Nasdaq fell 4%.
U.S. stocks ended their recent round of losses on Thursday after data showed a small rise in initial jobless claims last week.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow pays attention to the 33584-line today. If the Dow runs stably above the 33584-line, then pay attention to the suppression strength of the 33949 and 34221 positions.
Hong Kong Stocks
Fundamental Analysis:
Most of the Chinese stocks were lower on Friday, overlapping with the recent Hong Kong stocks rebounded sharply, and there were more profit-takings.
The FTSE China A50 Index futures opened lower and moved lower. This morning, the main index of Hong Kong stocks opened lower.
The Hang Seng Index (HSI) fell 1.54%, at 19594.52 points, the Hang Seng TECH Index (HSTECH) fell 2.54%, at 4258.59 points, and the Hang Seng China Enterprises Index (HSCEI) fell 1.92%, at 6702.67 points.
On the market, large technology stocks fell across the board, JD.com, Inc. (9618.HK), Baidu, Inc. (9888.HK) fell more than 4%, Alibaba Group Holding Limited (9988.HK), and Xiaomi Corporation (1810.HK) were lower.
Auto stocks fell sharply, the new energy car-maker Li Auto Inc. (2015.HK) saw a heavy drop of 11% after its performance.
Last Friday’s big rise in domestic housing stocks and property management stocks fell significantly, home appliances stocks, insurance stocks, cell phone concept stocks, restaurant stocks fell generally.
On the other hand, drug stocks were part of the strength, Shandong Xinhua Pharmaceutical Company Limited (0719.HK) jumped 10.8%, while internet medical stocks, aviation stocks rose generally.
The market has turned from a big bear to a big bull in a month or so, with more profit-taking, and a big shakeout is expected here at the annual line.
The market is currently very strong, the sectors have also risen a lot. It is necessary to set a good pace. To add, it is advisable not to chase high, hold positions patiently, and think about pocketing it when it’s soaring.
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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