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 ...
The S&P 500 closed lower on Friday, 5th August 2022, dragged down by Tesla and other tech-related stocks, after a strong jobs report dampened recent optimism that the Federal Reserve might ease its aggressive pace.
The data showed that the U.S. jobs rose much more than expected in July, the 19th consecutive month of gains, and the unemployment rate fell to a pre-pandemic low of 3.5%.
The report, along with some other recent data, depicts an optimistic picture of the world’s largest economy after experiencing a contraction in the first half of the year, which dampened investor expectations that the Federal Reserve may slow the pace of interest rate hikes.
The Fed has recently implemented a series of interest rate hikes to cool the economy.
Tesla plunged 6.6%, causing a major drag on the S&P 500 and Nasdaq. Facebook parent Meta Platforms fell 2% and Amazon dropped 1.2%, also causing a drag on the index.
The U.S. Treasury yields climbed as the likelihood of a 75 basis point rate hike in September increased.
That helped bank stocks, with JPMorgan Chase up 3%, and helped keep the Dow Jones Industrial Average above flat.
The focus now turns to this week’s inflation data, with U.S. consumer prices expected to rise at an annual rate of 8.7% in July after rising 9.1% in June.
Several policymakers this week said they want to stick with their aggressive tightening stance until they see strong, enduring evidence that inflation is falling back toward the Fed’s 2% target.
(Dow 30, 1-hour chart)
The Dow is focused on the 32781-line today. If the Dow runs steadily above the 32781-line, it will pay attention to the suppression strength of the two positions of 32975 and 33233. If the Dow runs steadily below the 32781-line, it will pay attention to the support strength of the two positions of 32455 and 32083.
Hong Kong Stocks
Hong Kong stocks were weak in morning trading, the Hang Seng Index (HSI) fell 0.75% narrowly defending the 20,000-point barrier, the Hang Seng China Enterprises Index (HSCEI) fell 1.09%, the Hang Seng TECH Index (HSTECH) fell 1.69% again lost 4400 points.
The southbound capital inflow bucked the trend with a net inflow of HK$1.102 billion in half a day, and the market turnover was HK$41.6 billion.
On the market, large technology stocks fell in general, Alibaba Group Holding Limited (9988.HK) fell by nearly 4%, Xiaomi Corporation (1810.HK), Tencent Holdings Limited (0700.HK), JD.com, Inc. (9618.HK), Kuaishou Technology (1024.HK), and Meituan (3690.HK) are down more than 2%, but NetEase, Inc. (9999.HK) counter-trend rose more than 2%.
Online education stocks fell in front, Koolearn Technology Holding Limited (1797.HK) fell the most.
Sanya and a number of popular summer tourist destinations suffered an epidemic attack, and restaurants and other consumer stocks fell significantly.
Tesla concept stocks, auto stocks, mobile game stocks, power stocks, and domestic insurance stocks have lower.
On the other hand, due to geopolitical tensions, military stocks continued to be active, with CSSC Offshore & Marine Engineering (Group) Company Limited (0317.HK) rising strongly by over 9%, while coal stocks, steel stocks, biotechnology stocks, paper and a few other sectors strengthened.
HG Semiconductor Limited (6908.HK) resumed trading and soared over 24%, and it plans to place up to 30 million shares.
(HK50, 1-hour chart)
HK50 focuses on the 20467-line today. If HK50 can run stably above the 20467-line, then pay attention to the suppression strength of 21450 and 22127. If HK50 runs below the 20467-line, then pay attention to the support strength of 19517 and 18606.
FTSE China A50 Index
(FTSE China A50, 1-hour chart)
FTSE China A50 focuses on the 13887-line today. If the A50 runs stably below the 13887-line, pay attention to the support strength of the two positions of 13544 and 13157. If the A50 runs above the 13887-line, it will open up further upward space. At that time, pay attention to the two positions of 14371 and 14695.
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