SINGAPORE, Sept 23 (Reuters) – As the Bank of Japan steps into currency markets for the first time in decades to defend a battered yen, it is running into numerous obstacles, chiefly its own stubborn commitment to ultra-easy monetary settin ...
Major U.S. stock indexes climbed to their highest in about a month on Wednesday, 7th September 2022, as U.S. bond yields fell and investors ignored hawkish statements made by Federal Reserve officials.
The Nasdaq, S&P 500 and Dow Jones Industrial Average last recorded a large single-day percentage gain on 10th August 2022.
However, investors are skeptical that this is a long-term trend.
The tech-heavy Nasdaq led the major indexes higher, ending a seven-day losing streak.
Hawkish statements from Fed Chairman Jerome Powell, coupled with signs of a slowdown in Europe and the economy and aggressive measures by major central banks to curb inflation, have led to a sharp sell-off in U.S. stocks since mid-August.
Data indicating the strength of the U.S. economy has prompted traders to bet that the Federal Reserve will raise interest rates by 75 basis points later this month.
Federal funds rate futures showed investors believe there is a more than 76% chance of such a move.
10-year U.S. bond yields retreated from three-month highs touched early in the session, boosting rate-sensitive stocks such as Tesla, Microsoft and Amazon.
When Treasury yields fall, high-growth companies, including those in the technology sector, tend to benefit because it means a lower discount to their future profits when investors calculate valuations.
Still, the market is looking for more outward signs of how the Fed will raise rates to curb surging inflation ahead of its next meeting later this month.
(Dow 30, 1-hour chart)
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
Overnight, Nasdaq rose more than 2%, the Chinese index rose more than 2%.
Hong Kong stocks, Hang Seng Index (HSI) opened flat, the Hang Seng China Enterprises Index (HSCEI) rose 0.08%, the Hang Seng TECH Index (HSTECH) rose 0.45%.
On the market, most of the large technology stocks rose, Alibaba Group Holding Limited (9988.HK) rose more than 1%, Baidu, Inc. (9888.HK), Xiaomi Corporation (1810.HK), Kuaishou Technology (1024.HK), and Meituan (3690.HK) were up.
Yesterday’s strong non-ferrous metal stocks continued to rise, e-cigarette concept stocks, Smoore International Holdings Limited (6969.HK) opened nearly 3% higher, while most of the restaurant stocks, film and entertainment stocks rose.
On the other hand, international oil prices fell sharply, U.S. oil fell below $ 82, three of the major crude oil sank.
U.S. West route container freight rates plunged 60% in the year, ports and shipping stocks lower.
(HK50, 1-hour chart)
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
(FTSE China A50, 1-hour chart)
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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