U.S. Stocks 

Fundamental Analysis: 

A late-day rally in U.S. stocks helped the S&P 500 close higher on Thursday, 1st September 2022, ending a previous four-day losing streak, as investors’ attention turned to the key U.S. jobs report due on Friday.

Stocks were down for most of the session.

Earlier data showed that U.S. initial jobless claims fell to the lowest level in two months last week, while layoffs fell in August, suggesting that the Federal Reserve has room to continue aggressive rate hikes to drive a slowdown in the labor market.

Investors are awaiting the monthly nonfarm payrolls report, due out on Friday, for more evidence on the labor market.

The S&P 500 reluctantly rebounded later in the session after hitting a low of 3903.65, close to what some analysts see as a strong support level of 3900.

The downtrend began on Friday after the S&P 500 index accumulated a decline of nearly 6% in the previous four trading days.

On that day, Fed Chairman Jerome Powell said the Fed would raise rates aggressively to fight inflation even after raising rates by 75 basis points in a row, a message that has been echoed by other Fed officials in recent days.

Despite the gains, the tone of the market was defensive, with health care stocks up 1.65% and utilities up 1.42%, both leading the gains.

Other economic data showed further easing of price pressures and steady growth in U.S. manufacturing in August as employment and new orders picked up.

Traders expect a 73.1% chance of a third consecutive 75 basis point Fed rate hike in September and expect rates to peak at around 3.993% in March 2023.

The expected path of Fed rate hikes adds to concerns that the Fed could make a policy mistake and let interest rates get too high, sending the economy into recession, while inflation has shown signs of easing.

Investors have also become more concerned about corporate earnings in an environment of rising interest rates, an environment that has also spurred a rally in the dollar.

Packaged food maker Hormel fell 6.56% after the company lowered its full-year profit forecast.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 31661-line today. If the Dow runs steadily above the 31661-line, it will pay attention to the suppression strength of the 32083 and 32455 positions. If the Dow runs steadily below the 31661-line, it will pay attention to the support strength of the 31291 and 31000 positions.

Hong Kong Stocks 

Fundamental Analysis: 

U.S. stocks were mixed overnight, with the Nasdaq falling for the first time in five straight months since February.

Hong Kong stocks Hang Seng Index (HSI) opened 0.13% lower, the Hang Seng China Enterprises Index (HSCEI) opened flat, the Hang Seng TECH Index (HSTECH) rose slightly by 0.01%.

On the market, large technology stocks were mixed, Xiaomi Corporation (1810.HK), NetEase, Inc. (9999.HK), and Tencent Holdings Limited (0700.HK) were lower. Meituan (3690.HK) rose about 2%, JD.com, Inc. (9618.HK), and Baidu, Inc. (9888.HK) were slightly higher.

The ranking of electric car companies changed in August, Li Auto Inc. (2015.HK) burst cold, new energy auto stocks generally fell, XPeng Inc. (9868.HK) fell more than 3%.

Power stocks, home appliance stocks, dairy stocks, biotechnology stocks, shipping stocks have fallen.

On the other hand, Internet medical stocks strengthened, with JD Health International Inc. (6618.HK) up 3.2% and Alibaba Health Information Technology Limited (0241.HK) up 1.1%, after the General Administration of Market Supervision released the “Supervision and Administration of Drug Network Sales”.

Airline stocks, domestic housing stocks and property management stocks were partly higher.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 19517-line today. If HK50 can run stably above the 19517-line, then focus on the suppression strength of the 20467 and 21450 positions. If the HK50 runs below the 19517-line, then pay attention to the support strength of the 18606 and 17535 positions.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 focuses on the 13544-line today. If the A50 runs stably below the 13544-line, pay attention to the support strength of the two positions of 13157 and 12945. If the A50 runs above the 13544-line, it will open up further upward space. At that time, pay attention to the two positions of 13887 and 14371.

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