U.S. Stocks 

Fundamental Analysis: 

The three major U.S. stock indexes closed lower on Tuesday, 31^st May 2022, after last week’s surge, as volatile oil markets continued to bring surging inflation into focus, while investors reacted to a hawkish statement from an official at the U.S. Federal Reserve.  

A representative of the Organization of the Petroleum Exporting Countries (OPEC) said some OPEC members are considering temporarily excluding Russia from the oil production deal as Western sanctions have hit Russia’s ability to increase production. 

Subsequently, the S&P energy stocks, which had earlier outperformed, fell. Federal Reserve policy is also at the forefront of investors’ concerns. President Joe Biden met with Federal Reserve Chairman Jerome Powell on Tuesday to discuss the historic inflation that is emptying Americans’ wallets.  

Biden said before the meeting, inflation control is his “top priority”.  

Fed Governor Waller said Monday, 30^th May 2022 that the Fed should be prepared to raise rates by 50 basis points at each future meeting until inflation is firmly under control.  

By the close of trading, the biggest decliners among the 11 major sectors in the S&P 500 were energy stocks, which was down by 1.6%. The only sector to close higher was non-essential consumer stocks, was up by 0.8%. 

Amazon was the stock that gave the S&P 500 the biggest boost, while communication services stocks rose 0.4% and Google gave the S&P 500 the second biggest boost.  

The Dow Jones Industrial Average fell 222.84 points, or 0.67%, to 32,990.12, the S&P 500 fell 26.09 points, or 0.63%, to 4,132.15, and the Nasdaq fell 49.74 points, or 0.41%, to 12,081.39.  

Technical Analysis: 

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 33233-line today. If the Dow runs stably above the 33233-line, it will pay attention to the suppression strength of the 33584 and 34088 positions. If the Dow falls below the 33233-line, it will pay attention to the support strength of the 32781 and 32455 positions.

Hong Kong Stocks 

Fundamental Analysis: 

Hong Kong stocks continued to move lower, with the Hang Seng Index (HSI) extending its decline to 1% and the Hang Seng TECH Index (HSTECH) falling nearly 2%.

Pharmaceutical stocks and technology stocks were the top decliners. CSPC Pharmaceutical Group Limited (1093.HK) plunged 6%, leading the decline in blue chips, NetEase, Inc. (9999.HK), Meituan (3690.HK) fell more than 3%, ANTA Sports Products Limited (2020.HK), WuXi Biologics (Cayman) Inc. (2269.HK) fell more than 3%.

On the board, large technology stocks fell in general, Baidu, Inc. (9888.HK) fell 4.47%, NetEase, Inc. (9999.HK) fell nearly 4%, Kuaishou Technology (1024.HK) fell 3%, JD.com, Inc. (9618.HK), the Meituan (3690.HK) fell more than 1%, and Xiaomi Corporation (1810.HK) was slightly higher.

Continuous rise in sporting goods stocks diverged, while cell phone concept stocks, power stocks, oil stocks, insurance stocks fell in general.

On the other hand, to promote auto consumption, auto stocks continue to strengthen, while F&B stocks, Internet medical stocks, gas stocks generally rose.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 20467-line today. If HK50 can run stably above the 20467-line, then pay attention to the suppression strength of 21450 and 22127. If HK50 runs below the 20467-line, then pay attention to the support strength of 19517 and 18606.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 pays attention to the 13157-line today. If the A50 runs steadily below the 13157-line, pay attention to the support strength of the two positions of 12945 and 12733. If the A50 runs above the 13157-line, it will open up further upward space. At that time, pay attention to the pressure of the two positions at 13544 and 13970.

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