U.S. Stocks
Fundamental Analysis:
30th December 2022 was the last trading day of 2022 for U.S. stocks.
U.S. stocks recorded their worst annual performance since 2008, hit by multiple adverse factors such as recession fears caused by the Fed’s continued rate hikes, the Russia-Ukraine conflict, supply chain tensions, and soaring inflation.
In 2022, the Dow fell 8.78%, the S&P 500 fell 19.44%, and the technology-dominated Nasdaq fell 33.1%.
In 2022, the communications services sector of the S&P 500 fell more than 40%, the non-essential consumer goods sector fell 37.4%, and the energy sector rose nearly 58%.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow today pays attention to the 33390-line. 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:
On the first day of Hong Kong stock market in 2023, all three major indices opened lower, with the Hang Seng Index (HSI) down 1.07%, the Hang Seng China Enterprises Index (HSCEI) down 1.2%, and the Hang Seng TECH Index (HSTECH) down 1.15%.
On the market, large technology stocks generally fell, JD.com, Inc. (9618.HK) fell more than 3%, NetEase, Inc. (9999.HK), Baidu, Inc. (9888.HK) fell more than 2%, Meituan (3690.HK), Alibaba Group Holding Limited (9988.HK), Kuaishou Technology (1024.HK) were down.
Biotechnology stocks plunged in front, Shanghai Junshi Biosciences Co., Ltd. (1877.HK) fell nearly 9% to lead the decline.
Domestic housing stocks and property management stocks, beer stocks, gas stocks, cell phone concept stocks fell in general.
On the other hand, power stocks continue to be active, tourism stocks, gambling stocks are strong, the same tour opened 2% higher.
A shares and Hong Kong stocks are expected to achieve significant positive returns in 2023, Hong Kong stocks phase outperformed A shares.
The Chinese market is expected to underperform in 2022 due to weakening internal fundamentals, external Fed policy tightening and geopolitical risks, especially for Hong Kong stocks.
2023 is expected to see double-digit gains for both A and Hong Kong stocks in 2023 as some factors improve marginally and current valuations remain attractive in the medium to long term.
In contrast, Hong Kong stocks were suppressed for a longer period of time and at a lower valuation level.
With the gradual easing of the “triple pressure”, especially the reversal of domestic fundamentals, the Hong Kong stock market may have greater repair flexibility and is expected to outperform the A-share market.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 pays attention to the 19517-line today. If HK50 can run stably above the 19517-line, then pay attention to the suppression strength of the two positions of 20467 and 21450.
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, 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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