U.S. Stocks 

Fundamental Analysis: 

U.S. stocks closed lower on Tuesday, 23rd August 2022, as investors focused on data showing a slowing economy ahead of the Federal Reserve meeting in Jackson Hole, Wyoming, later this week.

The S&P 500 fell after data showed U.S. private sector business activity contracted for a second straight month in August, with the service sector particularly weak as demand weakened amid high inflation and tighter financial conditions.

The preliminary S&P Global Composite Purchasing Managers’ Index (PMI) fell to 45 in August from a final reading of 47.7 in July, the lowest since May 2021.

Stocks have fallen in recent sessions ahead of this week’s Jackson Hole global central bank meeting, with Fed Chairman Jerome Powell expected to emphasize on Friday that the Fed is firmly committed to eliminating inflation, which is at a 40-year high.

Markets are split on whether the Fed will raise rates by 50 basis points or 75 basis points in September, with several policymakers recently pushing back against expectations of a dovish turn in Fed policy and highlighting the Fed’s commitment to fighting inflation.

Seven of the S&P 500’s 11 sectors were down, led by the real estate sector, down 1.46%, followed by the health care sector, down 1.39%.

After a rough start to the year, the market has been rallying since mid-June on hopes that inflation has peaked, but the summer rally came to a screeching halt last week as fears of an aggressive Federal Reserve tightening of monetary policy resurfaced.

The S&P 500 energy stock index rallied 3.6%, following a jump in crude oil prices as supply constraints came back into focus.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 32975-line today. If the Dow runs steadily above the 32975-line, it will pay attention to the suppression strength of the 33233 and 33390 positions. If the Dow runs steadily below the 32975-line, it will pay attention to the support strength of the 32781 and 32455 positions.

Hong Kong Stocks 

Fundamental Analysis: 

Overnight, the major U.S. stock indices closed slightly lower. Hong Kong stocks opened higher today, the Hang Seng Index (HSI) fell 0.2%, the Hang Seng China Enterprises Index (HSCEI) fell 0.26%, the Hang Seng TECH Index (HSTECH) fell 0.12%.

On the market, large technology stocks were mixed, Q2 results exceeded expectations, JD.com, Inc. (9618.HK) opened 2.6% higher, Meituan (3690.HK) rose more than 1%, Kuaishou Technology (1024.HK) performance after a low of 1.7%, Alibaba Group Holding Limited (9988.HK) fell nearly 2%.

Oil stocks and other energy stocks continue to be popular, food and beverage stocks, restaurant stocks part of the rise.

On the other hand, U.S. stocks in the new car-making power fell sharply, new energy auto stocks plunged, XPeng Inc. (9868.HK) after the results fell more than 9%, Li Auto Inc. (2015.HK), NIO Inc. (9866.HK) are lower.

Photovoltaic stocks, gambling stocks, home appliances stocks fell in general.

Logan Group Company Limited (3380.HK) resumed trading, and plunged nearly 57%, expected to be unable to pay the principal of the 7.5% USD notes due on 25th August.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 19517-line today. If HK50 can run stably above the 19517-line, then focus on the suppression strength of the 20467 and 21450 positions. If the HK50 runs below the 19517-line, then pay attention to the support strength of the 18606 and 17535 positions.

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, focus on the two positions of 14371 and 14695.

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.