U.S. Stocks 

Fundamental Analysis: 

The three major U.S. stock indexes closed sharply lower on Thursday, 16th June 2022, in a broad-based sell-off as recession worries intensified after the Federal Reserve on Wednesday carried out the sharpest interest rate hike since 1994, and many global central governments have also moved to curb rising inflation.

The S&P 500 fell for the sixth day in seven sessions.

Stocks rose on Wednesday after the Federal Reserve raised rates by 75 basis points as expected aggressively, helping the index end the longest losing streak since early January.

But rate hikes in Switzerland and the U.K. on Thursday reignited concerns that central banks’ efforts to curb inflation could lead to a sharp slowdown in global economic growth or a recession.

The Dow Jones Industrial Average fell 741.46 points, or 2.42%, to 29,927.07, the S&P 500 fell 123.22 points, or 3.25%, to 3,666.77, and the Nasdaq fell 453.06 points, or 4.08%, to 10,646.10.

All 11 major sectors of the S&P 500 closed lower, but defensive consumer essentials stocks outperformed the broader market as Walmart, General Mills, and Procter & Gamble were among the few stocks to gain.

Only 14 components of the S&P 500 index closed higher. Growth stocks were hit hard, with the Nasdaq closing 4% or lower for the fifth time since early May.

Technical Analysis: 

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 29767-line today. If the Dow runs steadily below the 29767-line, it will pay attention to the support strength of the 29204 and 28809 positions. If the Dow runs stably above the 29767-line, it will pay attention to the suppression strength of the 30350 and 31000 positions.

Hong Kong Stocks 

Fundamental Analysis: 

Stocks in Europe and the U.S. plunged overnight as recession expectations festered. Hong Kong stocks opened lower, the Hang Seng Index (HSI) fell 0.62%, the Hang Seng China Enterprises Index (HSCEI) fell 0.63%, the Hang Seng TECH Index (HSTECH) fell 1.18%.

On the plate, large technology stocks all fell, NetEase, Inc. (9999.HK) fell nearly 4%, JD.com, Inc. (9618.HK), Alibaba Group Holding Limited (9988.HK) fell more than 2%, Tencent Holdings Limited (0700.HK), Xiaomi Corporation (1810.HK), Kuaishou Technology (1024.HK) are down more than 1%.

Cell phone concept, gas stocks, biotechnology stocks, oil stocks, dairy stocks, photovoltaic stocks, sporting goods, and large financial stocks have fallen.

On the other hand, most of the e-cigarette concept stocks, auto stocks, and paper stocks rose against the trend.

The education sector opened higher, with Tianli Education International Holdings Limited (1773.HK) up nearly 15%, Wisdom Education International Holdings Company Limited (6068.HK) up nearly 14% and Koolearn Technology Holding Limited (1797.HK) up nearly 3%, rising for the 10th consecutive session.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 20614-line today. If HK50 can run stably above the 20614-line, then pay attention to the suppression strength of the 21450 and 22127 positions. If the HK50 runs below the 20614-line, then pay attention to the support strength of the 19517 and 18606 positions.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 focuses on the 14352-line today. If the A50 runs stably below the 14352-line, it will pay attention to the support strength of the two positions of 13970 and 13544. If the A50 runs above the 14352-line, it will open up further upward space. At that time, pay attention to the two positions of 14695 and 14985.

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