U.S. Stocks 

Fundamental Analysis: 

Major U.S. stock market indexes rose more than 2% on Friday, 6th January 2023 after U.S. data release showed job growth in December exceeded expectations, but payroll gains slowed and service sector activity shrank, easing concerns about the Federal Reserve’s path on interest rate hikes.

Data from the Labor Department showed that U.S. nonfarm jobs rose by 223,000 in December, while average hourly earnings rose 0.3%, less than expected and below the 0.4% increase in the previous month.

In a separate set of data, U.S. service sector activity fell in December for the first time in more than two and a half years as demand weakened and there were more signs that inflation was easing.

Investors are hopeful that the Federal Reserve is close to ending its action against inflation and that the technology sector, which has been most affected by the rate hikes, will recover.

That prospect, while not yet imminent, is one step closer to reality after the latest jobs report on Friday showed a slowdown in wage growth, which the Fed hopes is a sign of progress in the fight against inflation.

It’s perhaps no surprise that the tech-heavy Nasdaq 100 had its best day since 30th November 2022.

The upcoming earnings season could turn market sentiment around, but for now the outlook looks bleak.

That’s because S&P 500 component companies are expected to report a 2.7% decline in fourth-quarter profits.

Excluding the five largest components of the S&P 500, the figure is only 0.9% lower.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow today pays attention to the 33390-line. If the Dow runs stably above the 33390-line, then pay attention to the suppression strength of the 33584 and 33949 positions.

Hong Kong Stocks 

Fundamental Analysis: 

The Hong Kong stock market ushered in a good start last week and continued to open higher today.

The Hang Seng Index (HSI) rose 1.45%, Hang Seng China Enterprises Index (HSCEI) rose 1.4%, the Hang Seng TECH Index (HSTECH) rose 1.5%.

On the market, large technology stocks rose generally, Alibaba Group Holding Limited (9988.HK) rose 4%, Kuaishou Technology (1024.HK), Baidu, Inc. (9888.HK) rose more than 2%, Xiaomi Corporation (1810.HK), NetEase, Inc. (9999.HK), and Tencent Holdings Limited (0700.HK) are up.

China and Hong Kong officially cleared customs, Hong Kong local stocks rose across the board. Jack Ma is no longer in control of Ant Group, Ali concept stocks strengthened.

Pharmaceutical stocks, wind power stocks, photovoltaic stocks, home appliances stocks generally rose.

On the other hand, the trend of auto stocks diverged, new-energy carmaker, XPeng Inc. (9868.HK) fell more than 4%, NIO Inc. (9866.HK) rose 3.69%.

Red Star Macalline Group Corporation Ltd. (1528.HK) jumped 15%, C&D shares to acquire no more than 30% of the shares.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 pays attention to the 20467-line today. If HK50 can run stably above the 20467-line, then pay attention to the suppression strength of the two positions of 21450 and 22127.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 pays attention to the 13339-line today. If A50 runs stably below the 13339-line, pay attention to the support strength of the 12900 and 12659 positions. If the A50 runs above the 13339-line, it will open up further upside space.

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