U.S. stocks closed lower on Monday, 11th July 2022, as a lack of catalysts made market participants nervous ahead of key U.S. inflation data due later this week and the second quarter corporate earnings season set to kick off.
Market-leading growth stocks dragged all three major U.S. stock indexes lower, and the spread of the global Coronavirus heightened risk aversion.
Later this week, large banks including JPMorgan Chase, Citigroup and Wells Fargo will report results, marking the start of the second quarter earnings season.
The S&P 500 index of bank stocks fell 1.0%. Year-over-year earnings are expected to fall sharply as these big banks increase loan loss provisions, fueling fears of a looming recession.
Also, a series of economic data will be released later this week, including consumer prices, retail sales and factory output, should shed light on just how far inflation has hit its peak and the economy has cooled.
We are getting closer to the Fed’s policy meeting next week, at which a second consecutive 75 basis point rate hike is expected.
(Dow 30, 1-hour chart)
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
Overnight, the three major U.S. stock indices sank collectively, with Chinese stocks sharply lower.
Hong Kong stocks continued yesterday’s decline, with the Hang Seng Index (HSI) down 1.04% losing 21,000 points, the Hang Seng China Enterprises Index (HSCEI) down 1.26%, and the Hang Seng TECH Index (HSTECH) down 1.66%.
On the market, large technology stocks continued to move lower, Alibaba Group Holding Limited (9988.HK) fell 5%, Baidu, Inc. (9888.HK) fell more than 2%, Xiaomi, Kuaishou Technology (1024.HK), Tencent Holdings Limited (0700.HK) and Meituan (3690.HK) were down.
Auto stocks were the top decliners, BYD Company Limited (1211.HK) shares plunged more than 5%. Restaurant stocks and sporting goods stocks that rebounded from yesterday’s epidemic continued their downward trend.
On the other hand, power stocks and biotech stocks mostly rose, with China Longyuan Power Group Corporation Limited (0916.HK) opening 3.5% higher.
(HK50, 1-hour chart)
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
(FTSE China A50, 1-hour chart)
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 The pressure of the position.
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