U.S. Stocks 

Fundamental Analysis: 

U.S. stocks on the Nasdaq and S&P 500 closed higher on Thursday, 2nd February 2023, and touched roughly five-month highs as a more dovish-than-expected message from Federal Reserve Chairman Jerome Powell boosted stocks and the Dow Jones slipped, dragged down by declines in some large health care stocks.

Investors are still digesting the Fed’s policy decision on Wednesday and Powell’s comments, in which he acknowledged progress in fighting inflation and seemed reluctant to push back against the rally in stocks and bonds.

After a setback in 2022, U.S. stocks are off to a strong start this year, with sectors such as technology, which lagged last year, leading the rally on expectations that the Fed will moderate its aggressive rate hikes, which in turn could take some of the pressure off stock valuations.

That trend continued on Thursday.

The communications services sector jumped 6.7%, the biggest one-day gain in nearly three years, and giant stocks Apple, Amazon and Google parent Alphabet also rose strongly on Thursday ahead of after-hours earnings, with Apple up 3.7% and Amazon and Alphabet both up more than 7%.

The energy sector, which was a standout performer last year, fell sharply by 2.5% and the healthcare sector fell 0.7%.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow pays attention to the 34221-line today. 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: 

Despite the Caixin China Services PMI recorded 52.9 in January, the first expansion in five months, A-shares opened lower today.

All three indices were down more than 1%, and Hong Kong stocks continued yesterday’s weakness.

The three indices were down more than 2%, the Hang Seng Index (HSI) was down more than 460 points, the Hang Seng TECH Index (HSTECH) down 2%, and the Hang Seng China Enterprises Index (HSCEI) was down 2.3%.

After the Chinese New Year, the market-wide consensus is to observe China’s consumption recovery through the Chinese New Year consumption data.

The data also shows travel for the Spring Festival.

Data on travel, catering, and box office have all recovered within expectations, and have not far exceeded expectations. Therefore, with the strong rebound since November 2022, there is a need for funds to be cashed in.

In the coming time, the market will still be driven by the expectation of interest rate cuts in U.S. stocks to drive the restoration of global liquidity.

The other is to wait for data to verify the extent of China’s economic recovery.

Due to the relaxation of epidemic prevention policies in mainland China and Hong Kong, order demand has rebounded, and Hong Kong’s private economy has resumed its upward trajectory at the beginning of 2023.

S&P Global announced that the Hong Kong purchasing managers index (PMI) rose back to 51.2 in January, for the first time in five months rose through the 50 flat line.

At present, the market is still relatively optimistic about China’s consumer recovery.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 pays attention to the 22127-line today. If HK50 can run stably above the 22127-line, then pay attention to the suppression strength of the two positions of 22785 and 23294.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 pays attention to the 14371-line today. If A50 can run stably above the 14371-line, then pay attention to the suppression strength of the 14695 and 14985 positions.

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