U.S. Stocks 

Fundamental Analysis: 

U.S. stocks ended lower on Wednesday, 17th August 2022, with major indexes in choppy trading after minutes of the Federal Reserve’s July meeting showed policymakers may be less aggressive in raising interest rates in September than previously thought.

The major indexes pared losses sharply following the release of the minutes, with the Dow briefly turning higher before returning to lows hit earlier.

Target’s weak results and growth giants including Amazon weighed on the market for much of the session. Amazon closed down 1.9%.

Minutes of the meeting released on Thursday showed Fed members committed to raising interest rates to the level needed to keep inflation under control.

The Fed has raised its target range for its benchmark overnight rate by 225 points this year, from 2.25% to 2.50% now.

After the records were released, traders in U.S. federal funds futures saw a 50-basis-point rate hike in September as more likely.

Target closed down 2.7% after the retailer reported a 90% plunge in quarterly profit and same-store sales missed expectations.

The S&P 500 retail index fell 1.2%.

The day before, Walmart and Home Depot issued upbeat earnings and forecasts.

After a rough first half of the year, stocks have risen since early July.

Upbeat corporate earnings reports have helped fuel the rebound, while investors have also recently been optimistic that the Federal Reserve can deliver a soft landing for the economy.

Earlier data showed U.S. retail sales were unexpectedly flat in July and lower gasoline prices hurt sales at gas stations, but consumer spending appeared to have picked up early in the third quarter, further easing fears of a recession.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow is focused on the 33811-line today. If the Dow runs stably above the 33811-line, it will pay attention to the suppression strength of the two positions of 34088 and 34477. If the Dow is running steadily below the 33811-line, it will pay attention to the support strength of the two positions of 33584 and 33390.

Hong Kong Stocks 

Fundamental Analysis: 

The three major U.S. stock indices closed lower collectively overnight, and Chinese stocks continued to come under pressure.

Hong Kong stocks opened higher, the Hang Seng Index (HSI) rose 0.35%, the Hang Seng China Enterprises Index (HSCEI) rose 0.44%, the Hang Seng TECH Index (HSTECH) rose 0.26%.

On the market, large technology stocks diverged, Tencent Holdings Limited (0700.HK) opened higher by more than 4% after the performance, Meituan (3690.HK) rose about 2%, NetEase, Inc. (9999.HK), Baidu, Inc. (9888.HK) fell more than 1%.

The power sector continued yesterday’s gains, beer stocks continued to rise, China Resources Beer (Holdings) Company Limited (0291.HK) rose 4.5%, biotechnology stocks, shipping stocks, oil stocks, gambling stocks have risen.

On the other hand, some drug stocks moved lower significantly, yesterday’s strong home appliance stocks retraced.

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 focuses on the 13887-line today. If the A50 runs stably below the 13887-line, pay attention to the support strength of the two positions of 13544 and 13157. If the A50 runs above the 13887-line, it will open up further upward space. At that time, pay attention to the two positions of 14371 and 14695.

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