U.S. Stocks 

Fundamental Analysis: 

U.S. stock indexes closed higher Thursday, 7th July 2022, with the S&P 500 and Nasdaq closing higher for a fourth straight session, as traders turned in favor of stocks after Federal Reserve policymakers hinted at a more measured plan to raise interest rates.

The U.S. stocks stabilized in July after a massive sell-off in the first half of the year, weighed down by surging inflation, the conflict in Ukraine and the Federal Reserve’s abandonment of loose monetary policy.

The S&P 500 index closed higher in the first four trading days of the month so far, after recording its biggest first-half percentage decline since 1970. So far in 2022, the indicator index has not had a five-day winning streak.

The minutes of the Federal Reserve’s June policy meeting showed that policymakers reaffirmed their determination to keep prices under control. The Fed raised interest rates by 75 basis points at the meeting.

However, Fed policymakers acknowledged that the impact of interest rate increases on economic growth “greater than expected” risk, and judged that a 50 or 75 basis point rate increase at the July policy meeting may be appropriate.

Reports released on Thursday showed an unexpected increase in the number of initial jobless claims last week, with growing signs that demand for labor is cooling and layoffs surging to a 16-month high in June.

The closely watched jobs report due out on Friday is expected to show that nonfarm payrolls may have increased by 268,000 jobs in June, compared with an increase of 390,000 in May.

Almost all S&P 500 sectors were higher, with energy stocks surging 3.5% to become the best performers as shares of oil and gas companies followed oil prices, which rebounded from a 12-week low touched the day before.

Technical Analysis: 

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 31000-line today. If the Dow runs steadily above the 31000-line, it will pay attention to the suppression strength of the 31291 and 31661 positions. If the Dow runs steadily below the 31000-line, it will pay attention to the support strength of the 30608 and 30350 positions.

Hong Kong Stocks 

Fundamental Analysis: 

Overnight, stocks in Europe and the United States rose sharply, with Chinese stocks moving higher collectively.

Hong Kong stocks opened higher across the board, the Hang Seng Index (HSI) rose 1.47%, the Hang Seng China Enterprises Index (HSCEI) rose 1.36%, the Hang Seng TECH Index (HSTECH) rose 1.85%.

On the market, large technology stocks rose, Alibaba Group Holding Limited (9988.HK) rose 4.54%, NIO Inc. (9866.HK), Bilibili Inc. (9626.HK) rose more than 6% Baidu, Inc. (9888.HK) rose more than 3%, Kuaishou Technology (1024.HK) rose 2.44%. NetEase, Inc. (9999.HK), Kuaishou Technology (1024.HK), Tencent Holdings Limited (0700.HK), and Meituan (3690.HK) are higher.

Biomedical stocks are strong again, HUTCHMED (China) Limited (0013.HK), Brii Biosciences Limited (2137.HK) rose more than 4%.

Meanwhile, commodities collectively counterattack, gas stocks, gold stocks, copper, etc. have risen.

On the other hand, yesterday’s strong power stocks fell, while Chinese brokerage stocks, food and medical stocks were partly lower.

China Boton Group Company Limited (3318.HK) opened nearly 15% higher as two of the company’s subsidiaries received licenses for tobacco monopoly manufacturers regarding electronic cigarette oil.

YTO Express (International) Holdings Limited (6123.HK) rose nearly 12% as the company expects its interim net profit to increase by about 20% year-on-year.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 22127-line today. If HK50 can run stably above the 22127-line, then focus on the suppression strength of 22785 and 23294. If HK50 runs below the 22127-line, then pay attention to the support strength of 21450 and 20467.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 focuses on the 14695-line today. If the A50 runs stably below the 14695-line, it will pay attention to the support strength of the two positions of 14352 and 13970. If the A50 runs above the 14695-line, it will open up further upward space. At that time, pay attention to the two positions of 14985 and 15184.

Risk Disclosure   
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