The S&P 500 and Nasdaq indices ended lower on Monday, 27 September 2021, with investors pivoting to value shares as tech shares were hit by rising Treasury yields. As a result, tech shares weighed on equities in the quarter’s final week.
Economically sensitive stocks are up, while technology stocks have suffered huge blows. Meanwhile, the Fed is also indicating it is going to start tapering sooner rather than later, and that will probably help upward trajectory in rates. Rising rates typically reflect investors having a little bit more confidence in the economy not being stalled out.
In Washington, negotiations over funding the government, as well as raising the debt ceiling were heating up at the start of a week. and Congress could also include a vote on U.S. President Biden’s USD1 trillion infrastructure bill.
On the economic front, new orders for durable goods waltzed past analyst expectations, gaining 1.8% in August. The value of total new orders has grown beyond pre-pandemic levels to a seven-year high.
Subsequently, the S&P 500 is on track to snap its seven-month winning streak, with the prospect of higher corporate tax rates and hints from the U.S. Federal Reserve that it could start to tighten its accommodative monetary policies in the months ahead.
The Dow is still in the upward channel. Therefore, we will pay attention to the 34724 line today. Only when the Dow falls below the 34724 line, it will open up further downward revision. At that time, focus on the support of the 34477 line.
Hong Kong Stocks
The Hang Seng Index expanded to 1%, Hang Seng China Enterprises Index rose by 1.3%, and the MSCI China Red Chip Index rose by 1.12%.
On the technology front, the Hang Seng Technology Index added 1.41%, Alibaba rose by nearly 5%, Kuaishou increased by 4.42%, and Meituan rose by 2.9%.
On the other hand, domestic housing stocks rose collectively. Sunac China Holdings rose by nearly 15%, Kaisa Group rose by 7.54%, and China Evergrande rose by 6.27%.
On HK50 today, we pay attention to the support of the 24469 line. Once the buy order is obtained, then focus on the suppression strength of the two positions of 25160 and 25816 above. If HK50 falls below the 24469 line, it will open up further downward revision.
FTSE China A50 Index
On A50, pay attention to the 15184 line today. If A50 is above the 15184 line, it will remain as a bullish trend. Then, pay attention to the support of the 14669 line below.
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