U.S. Stocks 

Fundamental Analysis: 

In June, the United States added 209,000 non-farm payroll jobs, showing a slight slowdown compared to the previous month. However, the unemployment rate dropped from a seven-month high to 3.6%.  

Meanwhile, wages continued to rise strongly, indicating tight labor market conditions. This provides confidence for the Federal Reserve to consider resuming interest rate hikes. 

As the second half of the year begins, the U.S. stock market seems to have a challenging start, ending three consecutive trading days in the red.  

However, a series of robust economic data and the release of hawkish Federal Reserve meeting minutes have reignited expectations of a rate hike, dampening market risk appetite once again. 

Technical Analysis:  

As rate hike expectations rise, the market is under pressure, resulting in cumulative declines across the three major U.S. stock indices last week: 

• The S&P 500 index recorded a weekly decline of 1.16%. 

• The Nasdaq fell by 0.92%. 
• The Dow Jones Industrial Average dropped by 1.96%. 

This marks the poorest weekly performance since March. 

Hong Kong Stocks 

Fundamental Analysis: 

Hong Kong stocks opened significantly higher in the morning session, but later retraced from their highs. The Hang Seng Index (HSI) briefly rose over 2% during intraday trading.  

In terms of market performance, heavyweight technology stocks were generally up, with Alibaba (9988.HK) rising over 3%, and Kuaishou (1024.HK), JD.com (9618.HK) , Meituan (3690.HK) all rising over 2%. Tencent (0700.HK) also saw an increase of over 1%.  

The Summer Box Office broke 7 billion yuan, leading to collective strength in movie concept stocks. However, real estate developers are facing a peak in bond maturities, resulting in a retreat in property stocks.  

Jiayuan International Group (2768.HK) led the decline, dropping over 12%, dragging down building materials and cement stocks. Most automotive stocks also saw declines, with Leapmotor (9863.HK) and XPeng Inc. (9868.HK) both falling over 2%. 

Following the announcement of Ant Group’s penalty decision last Friday, the uncertainties surrounding the company’s future development have been resolved, leading to a slight rebound in Alibaba’s stock, which briefly rose over 5%. At the time of writing, Alibaba was up 3.2% at HKD 87. 

Technical Analysis: 

As of the midday close, 

• The Hang Seng Index (HSI) rose 0.78% to 18,509.38 points. 
• The Hang Seng Tech Index (HSTECH) increased by 1.25% to 3,932.9 points. 
• The Hang Seng China Enterprises Index (HSCEI) rose 0.7%. 

FTSE China A50 Index 

Fundamental Analysis: 

The A-share market showed overall strength this morning, with major indices rising to varying degrees.  

The new energy sector performed strongly, and the commerce and retail sector experienced significant gains, driving market sentiment. Additionally, A50 futures surged over 1.5% at one point this morning. 

Technical Analysis: 

The A-share market saw an uptick this morning, and as of the midday close: 

• The Shanghai Composite Index reclaimed the 3,200-point level and rose by 0.17%. 
• The Shenzhen Component Index increased by 0.60%, and the ChiNext Index rose by 1.58%. 
• A50 futures also experienced significant gains, surging over 1.5% at one point. 

Forward-looking Statements    
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