U.S. Stocks 

Fundamental Analysis: 

The S&P 500 and Nasdaq closed at their highest levels in a month on Friday, 13th January 2023, as shares of JPMorgan Chase and other banks rose following the release of their quarterly earnings reports, kicking off the U.S. earnings season.

All three major stock indexes posted strong gains last week, with the S&P 500 up 4.2% so far in 2023 and the CBOE Volatility Index Wall Street’s fear gauge closing at a one-year low.

On Friday, the financial sector was one of the sectors that gave the S&P 500 the most support.

JPMorgan Chase and Bank of America beat quarterly earnings estimates, while Wells Fargo and Citigroup reported lower-than-expected quarterly earnings.

But shares of all four major banks are rising, with the S&P 500 bank stock index closing 1.6% higher.

JPMorgan Chase shares rose 2.5%. Large Wall Street banks reserve more emergency funds to prepare for a possible recession, and reported weakness in investment banking, while showing caution in forecasting revenue growth, as the economy remains uncertain and rising interest rates increase competition in deposit-taking.

According to Lufthansa, year-over-year profits for S&P 500 companies are expected to fall 2.2% this quarter.

The market was also supported by a survey from the University of Michigan on Friday that showed an improvement in U.S. consumer sentiment, with one-year inflation in January expected to fall to its lowest level since the spring of 2021.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow today pays attention to the 34221-line. If the Dow runs stably above the 34221-line, then pay attention to the suppression strength of the 34477 and 34724 positions.

Hong Kong Stocks 

Fundamental Analysis: 

Ant Group and other 14 large platform companies have basically completed the problem rectification, the central bank will study and develop financial support measures to promote the healthy development of the platform economy;

On Friday, the U.S. Nasdaq recorded six consecutive positive, the Chinese index continued to strengthen.

On 16th January, Hong Kong’s major stock indices opened collectively higher. The Hang Seng Index (HSI) rose 0.37%, at 21818.65 points, the Hang Seng TECH Index (HSTECH) rose 0.50%, at 4577.34 points, and the Hang Seng China Enterprises Index (HSCEI) rose 0.44%, at 7423.45 points.

On the market, large technology stocks generally rose, Baidu, Inc. (9888.HK) rose 1.57%, Alibaba Group Holding Limited (9988.HK) rose 1.33%, JD.com, Inc. (9618.HK), Kuaishou Technology (1024.HK), and Xiaomi Corporation (1810.HK) are up.

Biomedical stocks continue to be active, Luye Pharma Group Ltd. (2186.HK), and Zai Lab Limited (9688.HK) led the rise.

Automotive stocks, domestic housing stocks, telecommunications stocks, domestic banking stocks, beer stocks, and most of the Apple concept stocks rose.

Driven by external factors in the Hong Kong stock market and internal factors of Hong Kong listed companies, it is expected that the Hong Kong stock market will stabilize and rebound in 2023, which is on the way and is expected to realize the recovery of performance and valuation, and the opportunity of structural bull market is foreseeable.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 pays attention to the 21450-line today. If HK50 can run stably above the 21450-line, then pay attention to the suppression strength at the two positions of 22127 and 22785.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 pays attention to the 13887-line today. If A50 runs stably below the 13887-line, it will pay attention to the support strength of the 13653 and 13339 positions. If the A50 runs above the 13887-line, it will open up further upside space.

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