U.S. Stocks
Fundamental Analysis:
U.S. stocks closed higher on Thursday, 12th January 2023, extending recent gains, as data showed consumer prices fell in December from a year earlier, bolstering expectations for a less aggressive interest rate hike by the Federal Reserve.
The report showed that U.S. consumer prices fell in December for the first time in more than two and a half years, meaning inflation is now on a continuing downward path.
Markets traded shakily after the Consumer Price Index (CPI) data was released.
Rents remained high in the report, while the labor market remained tight and inflation remained well above the Fed’s target.
A separate report on Thursday showed that initial jobless claims fell last week.
The slowdown in U.S. inflation could pave the way for the Fed to be able to lower consumer prices without seriously hurting growth.
The Fed’s Bullard said the level of interest rates should be raised above 5% as soon as possible to ensure that price pressures are eased.
By the close of trading, the Dow Jones rose 0.64%, the Nasdaq rose 0.64% and the S&P 500 rose 0.34%.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
Dow pays attention to the 33949-line today. If Dow runs stably above the 33949-line, then pay attention to the suppression strength of the 34221 and 34477 positions.
Hong Kong Stocks
Fundamental Analysis:
The three major indices of Hong Kong stocks fluctuated within a narrow range in the morning trading.
The Hang Seng Index (HSI) rose 0.23%, the Hang Seng China Enterprises Index (HSCEI) rose 0.1% and the Hang Seng TECH Index (HSTECH) fell slightly by0.04%.
The half-day net southbound capital inflow was HKD 3.11 billion, and the market turnover was HKD 65.3 billion.
On the market, large technology stocks were divided. Meituan (3690.HK), JD.com, Inc. (9618.HK) fell 2%, NetEase, Inc. (9999.HK) rose more than 3%, while Alibaba Group Holding Limited (9988.HK), and Tencent Holdings Limited (0700.HK) rose slightly.
Institutions pointed out that pharmaceutical stocks are expected to reverse, as biomedical stocks and medical equipment stocks led the rise.
Online education stocks rose higher again, Koolearn Technology Holding Limited (1797.HK) continued to record high prices.
Aviation stocks, heavy machinery stocks, building materials cement stocks, oil stocks, coal stocks, domestic insurance stocks are active.
On the other hand, power stocks fell continued to fall, port shipping stocks, and gambling stocks fell significantly, while China Merchants Port Holdings Company Limited (0144.HK) fell 5.6% on heavy volume.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 pays attention to the 20467-line today. If HK50 can run stably above the 20467-line, then pay attention to the suppression strength of the two positions of 21450 and 22127.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 pays attention to the 13339-line today. If A50 runs stably below the 13339-line, pay attention to the support strength of the 12900 and 12659 positions. If the A50 runs above the 13339-line, it will open up further upside space.
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