U.S. Stocks
Fundamental Analysis:
U.S. stocks closed lower for a third straight session on Friday, 17th December 2022, falling for a second straight week as concerns continued that the Fed’s actions to curb inflation would send the economy into recession; stocks have stumbled lower since the Fed announced a 50 basis point rate hike, as expected.
Fed Chairman Jerome Powell’s statement signals further policy tightening, with policymakers expecting interest rates to break the 5% mark in 2023, a level not seen since 2007.
Last week, the Dow fell 1.66%, the S&P 500 fell 2.09% and the Nasdaq retreated 2.72%.
Money market bets suggest the Fed will raise interest rates at least twice next year by 25 basis points each, touching a terminal rate of about 4.8% by mid-year and lowering rates to about 4.4% by the end of 2023.
On the economic front, data showed that U.S. business activity contracted further in December, with new orders slumping to their lowest level in two and a half years, although the slowdown in demand helped cool inflation.
The prospect of a “Christmas rally” in the market this year, or a year-end rally, has dimmed, with most global central banks tightening policy.
The Bank of England and the European Central Bank said Thursday that the current cycle of interest rate hikes will continue for a longer period of time.
However, the market pared losses in the last hour of trading, partly due to the simultaneous expiration of stock options, stock index futures and index options contracts, that is, the triple witch gathering, which may increase market volatility.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow today pays attention to the 33233-line. If the Dow runs stably above the 33233-line, then pay attention to the suppression strength of the 33390 and 33584 positions.
Hong Kong Stocks
Fundamental Analysis:
The three major indices of Hong Kong stocks opened lower on a high note, with the Hang Seng Index (HSI) down 0.45%, the Hang Seng China Enterprises Index (HSCEI) down 0.33% and the Hang Seng TECH Index (HSTECH) down 0.34%.
The half-day net southbound capital inflow was HK$2.014 billion, and the turnover of the market was HK$60.3 billion.
On the market, the Central Economic Work Conference emphasized support for platform companies, large technology stocks strengthened, with Meituan (3690.HK) and Alibaba Group Holding Limited (9988.HK) up about 2%, and Kuaishou Technology (1024.HK), Bilibili Inc. (9626.HK), Tencent Holdings Limited (0700.HK) and NetEase, Inc. (9999.HK) up 1%.
The State Council encourages social forces to provide diversified education services, support and regulate the development of private education, education stocks rose strongly, Wisdom Education International Holdings Company Limited (6068.HK) surged 57%, and Koolearn Technology Holding Limited (1797.HK) rose 10% to a new record high.
Institutions said the car or an important grip to expand consumption, auto dealer stocks rose generally.
Foxconn concept stocks, beer stocks, Hong Kong retail stocks and other stocks partly stronger.
On the other hand, Macau’s six blog enterprises renewed their licenses, and the big banks said no surprise, gaming stocks plunged, MGM China Holdings Limited (2282.HK) fell 14%;
Internet medical stocks, anti-epidemic concept stocks, pharmaceutical stocks and other epidemic prevention-related concept stocks pulled back sharply.
Building materials and cement stocks, domestic housing stocks, semiconductor stocks, shipping and port stocks, power stocks and other multi-stock collective decline.
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, 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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