U.S. Stocks 

Fundamental Analysis: 

Major U.S. stock indexes closed lower on Tuesday, 6th September 2022, the first trading day after the Labor Day holiday and summer vacation in the U.S.

The market traded in shock as the market was assessing new economic data.

A survey by the Institute for Supply Management (ISM) showed that the U.S. service sector rebounded for the second consecutive month in August due to order growth and strong employment, while supply bottlenecks and price pressures eased.

However, data from S&P Global showed that the final U.S. services purchasing managers’ index (PMI) in August was less than the initial value.

The stronger-than-expected U.S. services data fueled expectations that the Federal Reserve will continue to raise interest rates to curb inflation.

The technology-dominated Nasdaq fell for a seventh straight day, marking the longest-lasting round of declines since November 2016.

Interest rate-sensitive Amazon and Microsoft both fell about 1% as the yield on the indicator U.S. Treasury rose to its highest since June.

Apple, will launch a new iPhone on next Wednesday, fell by 0.8%.

Stocks got off to a weak start in September, continuing a downward trend that began in late August when hawkish statements from Federal Reserve policymakers and data highlighting the momentum of the U.S. economy raised concerns about aggressive interest rate hikes.

So far this year, the S&P 500 is down by nearly 18% and the Nasdaq is down more than 26%, with rising interest rates dealing a blow to large technology and growth stocks.

Among the major sectors of the S&P 500, energy and communications services stocks have been the worst performers, while defensive utilities and real estate stocks have climbed.

The CBOE Market Volatility Index, known as the Wall Street Panic Index, closed at 26.91, having earlier touched a nearly two-month high of 27.80.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 31265-line today. If the Dow runs steadily above the 31265-line, it will pay attention to the suppression strength of the two positions of 31661 and 31995. If the Dow runs steadily below the 31265-line, it will pay attention to the support strength of the two positions of 31000 and 30608.

Hong Kong Stocks 

Fundamental Analysis: 

Overnight, the Nasdaq fell for seven consecutive days, U.S. stocks hit a seven-week low, and the Chinese index fell by nearly 3%.

Hong Kong stocks opened sharply lower, the Hang Seng Index (HSI) fell 1.49% to lose the 19,000-point barrier, the Hang Seng China Enterprises Index (HSCEI) fell 1.51%, and the Hang Seng TECH Index (HSTECH) fell 1.93%.

On the market, large technology stocks sank collectively, Baidu, Inc. (9888.HK) fell more than 4%, Alibaba Group Holding Limited (9988.HK), Kuaishou Technology (1024.HK), and Xiaomi Corporation (1810.HK) are down more than 2%. JD.com, Inc. (9618.HK), Meituan (3690.HK), and Tencent Holdings Limited (0700.HK) fell more than 1%, while JD Health International Inc. (6618.HK) fell nearly 4%, and Bilibili Inc. (9626.HK) fell 3.4%.

Online education stocks, which led yesterday’s rally, pulled back, and cars fell again, with XPeng Inc. (9868.HK) falling more than 4%.

Home appliance stocks, sporting goods stocks, port and shipping stocks, and biotech stocks were generally lower.

On the other hand, food and beverage stocks, building materials and cement stocks partially rose, with Master Kong Holdings bucking the trend and opening higher.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 19517-line today. If HK50 can run stably above the 19517-line, it will pay attention to the suppression strength of the 20467 and 21450 positions. If the HK50 runs below the 19517-line, it will 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 13157-line today. If the A50 runs steadily below the 13157-line, it will pay attention to the support strength of the two positions of 12945 and 12733. If the A50 runs above the 13157-line, it will open up further upward space. At that time, pay attention to the two positions of 13544 and 13887.

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