U.S. Stocks 

Fundamental Analysis: 

U.S. stocks closed sharply higher on Wednesday, 11th January 2023 with the S&P 500 and Nasdaq both up more than 1%, as investors felt optimistic ahead of an inflation report that could give the Federal Reserve room to slow the pace of aggressive interest rate hikes.

Economists interviewed by Reuters forecast that the highly anticipated report, due out Thursday, will show the U.S. consumer price index (CPI) rose 6.5% year-on-year in December, slowing from November’s 7.1% growth rate.

Among the sectors, real estate and non-essential consumer goods stocks were the strongest performers, while Microsoft, Amazon and other mega-cap growth stocks gave the biggest boost to the S&P 500.

The indicator index is up so far in 2023 after falling sharply last year.

Hopes that the Fed may soon slow the pace of aggressive tightening after seven rate hikes in 2022 have boosted the market in recent sessions, even as speeches from some Fed officials support the view that the Fed needs to be wary of raising rates to fight inflation.

This week also marks the start of the fourth-quarter earnings season for S&P 500 component companies, which are expected to report lower year-over-year earnings overall, according to Lufthansa IBES data.

Later this week, large U.S. banks will kick off earnings season, with quarterly earnings expected to fall as the risk of recession rises due to tighter monetary policy.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow today pays attention to the 33949-line. If the Dow runs stably above the 33949-line, then pay attention to the suppression strength of the 34221 and 34477 positions.

Hong Kong Stocks 

Fundamental Analysis: 

Hong Kong stocks in the morning session three major indices dived to turn down.

The Hang Seng TECH Index (HSTECH) once fell nearly 3%, closed down 1.89% at noon, the Hang Seng Index (HSI), and Hang Seng China Enterprises Index (HSCEI) points are down 0.33% and 0.54%.

The half-day net southbound capital inflow was HK$1.131 billion, the market turnover was HK$93.6 billion. 

On the market, large technology stocks have fallen dragged the market lower, Kuaishou Technology (1024.HK) fell more than 4%, Tencent Holdings Limited (0700.HK), Alibaba Group Holding Limited (9988.HK) fell more than 3%, Meituan (3690.HK), Baidu, Inc. (9888.HK), JD.com, Inc. (9618.HK) are down, but NetEase, Inc. (9999.HK) counter trend up about 5%.

Restaurant stocks fell in front, under the sea to hold a close to 120 billion Hong Kong dollars, domestic housing stocks and property management stocks fell significantly, hand games stocks, home appliances, power stocks, education stocks, aviation stocks fell. 

On the other hand, most of the auto stocks rose, BYD shares rose more than 6% of the best performance, oil stocks, pork concept stocks, copper stocks strong, COFCO Joycome Foods Limited (1610.HK) jumped 9%.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 pays attention to the 20467-line today. If HK50 can run stably above the 20467-line, then pay attention to the suppression strength of the two positions of 21450 and 22127.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 pays attention to the 13339-line today. If A50 runs stably below the 13339-line, pay attention to the support strength of the 12900 and 12659 positions. If the A50 runs above the 13339-line, it will open up further upside space.

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