U.S. Stocks 

Fundamental Analysis: 

The S&P 500 and the Dow Jones Industrial Average fell nearly 2% on Wednesday, 18th January 2023, the largest single-day drop in more than a month, after weak economic data fueled recession fears and hawkish comments from Federal Reserve officials further damaged investor sentiment.

U.S. economic data released before the opening bell showed that retail sales and the producer price index (PPI) fell more than expected in December, and industrial production fell more than expected.

The Nasdaq fell for the first time in eight trading days on Wednesday, while both the S&P 500 and the Dow Jones Industrial Average posted their biggest single-day percentage declines since 15th December 2023.

The weakest sectors on Wednesday were a 2.7% drop in defensive essential consumer goods stocks and a 2.4% drop in utilities.

By contrast, the best performers were in more growth-oriented sectors, such as communications services stocks, which fell 0.9%, and technology stocks, which slid 1.3%.

Earlier in the day, St. Louis Fed President Bullard and Cleveland Fed President Meister stressed the need to raise interest rates above 5% to keep inflation in check.

And later in the afternoon, Philadelphia Fed President Harker said he expects the Fed to raise rates a few more times this year, although he reiterated his earlier remarks that he is ready for the Fed to slow the pace of rate hikes due to signs of cooling inflation.

The Fed official also highlighted the gap between the Fed’s estimate of the terminal rate and market expectations, which see rates peaking at 4.88% in June.

The market is now betting on a 25 basis point rate hike in February. Investors are also watching corporate earnings in the fourth quarter to get a sense of how U.S. com

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow today pays attention to the 33390-line. If the Dow runs stably above the 33390-line, then pay attention to the suppression strength of the 33584 and 33949 positions.

Hong Kong Stocks 

Fundamental Analysis: 

Overnight, U.S. stocks fell, Hong Kong stocks opened lower across the board, the Hang Seng Index (HSI) fell 1.04%, the Hang Seng China Enterprises Index (HSCEI) fell 1.25%, and the Hang Seng TECH Index (HSTECH) fell 1.77%.

On the market, large technology stocks all fell, Kuaishou Technology (1024.HK) fell 4%, Baidu, Inc. (9888.HK) fell 3.6%, JD.com, Inc. (9618.HK), Alibaba Group Holding Limited (9988.HK) fell nearly 3%, Xiaomi Corporation (1810.HK), Meituan (3690.HK), Tencent Holdings Limited (0700.HK), and NetEase, Inc. (9999.HK) are down.

Most of the mobile game stocks that led the gains yesterday fell, auto stocks generally opened lower, restaurant stocks, domestic insurance stocks, domestic insurance stocks have fallen.

On the other hand, lithium battery stocks, Tianqi Lithium Corporation (9696.HK) performance after a high opening of nearly 3%, steel, gold, copper and other non-ferrous metal stocks continue to be active.

Lehua Entertainment opened more than 37% higher on its first day of listing and soared nearly 43% in the dark yesterday.

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 13320 positions. If the A50 runs above the 13887-line, it will open up further upside space.

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