U.S. Stocks 

Fundamental Analysis: 

U.S. stocks were lower Monday, 31st October 2022, with major stock indexes ending a month of strong gains with losses as investor focus turned once again to the Federal Reserve’s policy meeting this week.

The Fed is widely expected to raise rates by 75 basis points at the end of its two-day policy meeting on Wednesday, but investors will be looking for any signals that the Fed may consider slowing rate hikes in the future.

Hopes that the Fed may pull back on its aggressive rate hike policy have boosted stocks in recent weeks, with the S&P 500 recording a nearly 9% gain over the past two weeks.

The Dow posted its biggest monthly percentage gain since January 1976 and its biggest October percentage gain since at least 1900.

Comments from Fed officials following the policy decision and labor market data later this week will help the market form expectations for a rate hike at the December meeting and beyond.

In October, the Dow jumped 13.95%, the S&P 500 climbed 7.99% and the Nasdaq gained 3.9%.

Large growth stocks such as Amazon and Google parent Alphabet, which have been under pressure in a rising interest rate environment, also moved lower, falling 0.94% and 1.85%, respectively.

Nearly all 11 sectors of the S&P 500 fell, with the technology and communications services sectors as the worst performers, down more than 1%.

The energy sector was the only sector to gain before President Joe Biden spoke on oil companies late Monday.

Energy companies such as Chevron and ExxonMobil reported profits well ahead of expectations this quarter, benefiting from soaring energy prices, in stark contrast to the large technology companies that largely disappointed investors.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 32681-line today. If the Dow runs steadily above the 32681-line, it will pay attention to the suppression strength of the 32975 and 33390 positions. If the Dow runs steadily below the 32681-line, it will pay attention to the support strength of the 32363 and 32038 positions.

Hong Kong Stocks 

Fundamental Analysis: 

The market is focused on this week’s Federal Reserve interest rate meeting.

Hong Kong stocks rebounded higher, the Hang Seng Index (HSI) rose 1.18%, the Hang Seng China Enterprises Index (HSCEI) rose 1.36%, and the Hang Seng TECH Index (HSTECH) rose 1.77%.

On the market, large technology stocks generally rose, NetEase, Inc. (9999.HK), and JD.com, Inc. (9618.HK) rose more than 3%. Meituan (3690.HK), Alibaba Group Holding Limited (9988.HK), and Kuaishou Technology (1024.HK) rose more than 2%, while Baidu, Inc. (9888.HK), and Tencent Holdings Limited (0700.HK) rose more than 1%.

Drug stocks strengthened significantly, with CSPC Pharmaceutical Group Limited (1093.HK) rising nearly 5% to lead the blue chips.

Yesterday’s plunge in sporting goods stocks rebounded, Internet medical stocks, cell phone concept stocks, home appliances stocks, auto stocks have risen.

On the other hand, the domestic housing stocks CIFI Holdings (Group) Co. Ltd. (0884.HK) plunged nearly 26%, tourism sto

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 15136-line today. If HK50 can run stably above the 15136-line, then pay attention to the suppression strength of the 15995 and 16964 positions. If the HK50 runs below the 15136-line, then pay attention to the support strength of the 14309 and 13611 positions.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 pays attention to the 11220-line today. If the A50 runs steadily below the 11220-line, pay attention to the support strength of the two positions of 10989 and 10750. If the A50 runs above the 11220-line, it will open up further upward space. At that time, pay attention to the two positions of 11665 and 11955.

Risk Disclosure   
Trading in financial instruments involves high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding the investor’s initial investment could incur within a short period of time. The past performance of a financial instrument is not an indication of its future performance.  Investments in certain services should be made on margin or leverage, where relatively small movements in trading prices may have a disproportionately large impact on the client’s investment and client should therefore be prepared to suffer significant losses when using such trading facilities.   

Please make sure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with Doo Prime’s trading platforms. You should seek independent professional advice if you do not understand any of the risks disclosed by us herein or any risk associated with the trade and investment of financial instruments. Please refer to Doo Prime’s Client Agreement and Risk Disclosure Statement to find out more. 

[Disclaimer]  
This information is addressed to the general public solely for information purposes and should not be taken as investment advice, recommendation, offer, or solicitation to buy or sell any financial instrument. The information displayed herein has been prepared without any reference or consideration to any particular recipient’s investment objectives or financial situation. Any references to the past performance of a financial instrument, index, or a packaged investment product shall not be taken as a reliable indicator of its future performance. Doo Prime and its holding company, affiliates, subsidiaries, associated companies, partners and their respective employees, as well as managers, make no representation or warranties to the information displayed and Doo Prime and its holding company, affiliates, subsidiaries, associated companies, partners and their respective employees, as well as managers, shall not be liable for any direct, indirect, special or consequential loss or damages incurred a result of any inaccuracies or incompleteness of the information provided. Doo Prime and its holding company, affiliates, subsidiaries, associated companies, partners and their respective employees, as well as managers, shall not be liable for any direct, indirect, special or consequential loss or damages incurred as a result of any direct or indirect trading risks, profit, or loss arising from any individual’s or client’s investment.