U.S. Stocks 

Fundamental Analysis: 

U.S. stocks closed mixed on Thursday, 1^st December 2022, while the market was digesting U.S. data that a Fed rate hike was in play.  

On Wednesday, the S&P 500 jumped more than 3% on optimism that the Federal Reserve may slow the pace of interest rate hikes.  

U.S. manufacturing activity contracted in November for the first time in two and a half years as rising borrowing costs weighed on demand for goods, data showed, proving that the Fed’s rate hikes have begun to cool the economy.  

The personal consumption expenditures (PCE) price index rose 0.3% in October from a year earlier, unchanged from September, when it climbed 6.0% in the 12 months to October, after rising 6.3% in September.  

Excluding the volatile food and energy components, the core PCE price index rose 0.2% from a year earlier, 0.1% points less than expected, after rising 0.5% in September. 

Wednesday’s rally pushed the S&P 500 above its 200-day moving average for the first time since April after Federal Reserve Chairman Jerome Powell said it was time to slow the pace of interest rate hikes.  

The market now sees a 79% chance that the Fed will raise its target rate by 50 basis points in December and a 21% chance of a 75 basis point hike.  

Discount retailer Dollar General plunged 7.5% after the company cut its annual profit forecast, while Costco (Costco, Costco) fell 6.6% after the membership retail chain reported slower sales growth in November.  

Of the 11 sectors in the S&P 500, seven fell, led by the financial sector, down 0.71%, followed by the essential consumer goods sector, down 0.47%.  

The U.S. Labor Department reported on Thursday that initial jobless claims fell by 16,000 to a seasonally adjusted 225,000 for the week ended 26^th November 2022.  

Investors now await Friday’s nonfarm payrolls data for clues on the impact of a rate hike on the labor market.  

With one month left in 2022, the S&P 500 is down about 14% and the Nasdaq is down about 27% so far this year. 

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow today pays attention to the 34221-line. If the Dow runs stably above the 34221-line, then pay attention to the suppression strength of the 34724 and 34990 positions.

Hong Kong Stocks 

Fundamental Analysis: 

Hong Kong stocks pushed higher in the morning session after a rapid fall. 

The Hang Seng Index (HSI), and the Hang Seng China Enterprises Index (HSCEI) were turned down from up to 0.66% and 0.63%. The Hang Seng TECH Index (HSTECH) narrowed to 0.12%, the highest intraday rise of 2.5%.  

The half-day net southbound capital inflow was 1.786 billion Hong Kong dollars, while the market turnover was of 68.1 billion Hong Kong dollars.  

On the market, large technology stocks rose and fell. Meituan (3690.HK) rose 2%, Kuaishou Technology (1024.HK) rose 1.65%, Xiaomi Corporation (1810.HK) fell more than 2%, NetEase, Inc. (9999.HK), JD.com, Inc. (9618.HK), Baidu, Inc. (9888.HK), Tencent Holdings Limited (0700.HK) are down. 

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 pays attention to the 18606-line today. If HK50 can run stably above the 18606-line, then pay attention to the suppression strength of the two positions of 19517 and 20467.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 pays attention to the 12900-line today. If A50 runs stably below the 12900-line, pay attention to the support strength of the two positions of 12659 and 12273. If A50 runs above the 12900-line, it will open up further upside space.  

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