U.S. Stocks 

Fundamental Analysis: 

U.S. stocks closed sharply lower on Tuesday, 29th June 2022, in a broad-based sell-off as poor consumer confidence data dampened investor optimism and fueled concerns about the recession and the upcoming earnings season.

The S&P 500 and Nasdaq fell about 2% and 3%, respectively, with Apple, Microsoft and Amazon bringing the biggest drag to the index. The blue-chip Dow was down about 1.6%.

With the end of the month and the end of the second quarter approaching, the index S&P 500 is on track for its largest first-half percentage decline since 1970.

All three major indexes are on track to post their first two consecutive quarterly declines since 2015.

By the close, the Dow Jones Industrial Average was down 491.27 points, or 1.56%, to 30,946.99, the S&P 500 was down 78.56 points, or 2.01%, to 3,821.55, and the Nasdaq was down a heavy 343.01 points, or 2.98%, to 11,181.54.

Meanwhile, 10 of the 11 major sectors in the S&P 500 closed lower. Energy stocks were the only sector to gain, benefiting from higher crude oil prices.

Technical Analysis: 

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 31661-line today. If the Dow runs steadily above the 31661-line, it will pay attention to the suppression strength of the 32083 and 32455 positions. If the Dow runs steadily below the 31661-line, it will pay attention to the support strength of the 31291 and 31000 positions.

Hong Kong Stocks 

Fundamental Analysis: 

Overnight, the three major U.S. stock indexes fell for the second day in a row, with the Nasdaq performing its worst, dropping nearly 3%.

The National Health Commission’s reduction of the quarantine period for immigrants boosted investor sentiment, and “return to normal”.

That said, concept stocks such as aviation, travel, catering, and gambling are expected to continue to be active in the short term.

At the opening of the market today, the Hong Kong stock market’s Hang Seng Index (HSI) opened 1.31% lower at 22,125.61 points, China Hongqiao Group Limited (1378.HK) fell by more than 6%, and Alibaba Group Holding Limited (9988.HK) and NetEase, Inc. (9999.HK) fell by more than 3%.

Li Auto Inc. (2015.HK) fell about 7% and plans to issue an additional ADS of up to US$2 billion. NIO Inc. (9866.HK) fell by about 6%. The previous response was shorted by Grizzly Research, saying that the report contained a lot of false information and relevant procedures had been initiated.

The Hang Seng TECH Index (HSTECH) fell by 2.28%, Li Auto Inc. (2015.HK) fell by more than 7%, NIO Inc. (9866.HK) fell by more than 6%, GDS Holdings Limited (9698.HK) and Trip.com Group Limited (9961.HK) fell by more than 5%, XPeng Inc. (9868.HK) fell by nearly 5%, and NetEase, Inc. (9999.HK) and Alibaba Group Holding Limited (9988.HK) fell by more than 3%.

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, 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.

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