U.S. Stocks 

Fundamental Analysis: 

U.S. stocks closed lower on Monday, 5th December 2022, as better-than-expected U.S. services data came as quite a surprise and investors reassessed whether the Federal Reserve will continue to raise interest rates for a longer period of time, while Tesla fell on reports of production cuts.

Tesla fell sharply by 6.4% after the company reportedly planned to cut its December Model Y production by more than 20% from the previous month.

Tesla was one of the biggest losers in the Nasdaq index, dragging the tech-heavy stock index down for a second straight session.

Data released earlier showed that U.S. service sector activity unexpectedly picked up in November and employment rebounded, providing more evidence of potential economic momentum at a time when the economy is expected to slip into recession next year.

This dealt a blow to major stock indices. This was coupled with data released last week showing stronger-than-expected U.S. employment and payroll growth in November.

This challenged hopes that the Federal Reserve might slow the pace and magnitude of interest rate hikes amid recent signs of weakening inflation.

The Federal Open Market Committee (FOMC), which sets interest rates, will meet on 13th – 14th December 2022 in what will be the last meeting of a turbulent year in which the Fed has tried to curb inflation, which is at multi-decade highs, by raising rates at record levels.

The aggressive policy tightening has also sparked fears of a recession, with institutions such as JPMorgan Chase, Citigroup and BlackRock all seeing a possible recession in 2023.

Among other economic data released this week, investors will also be watching last week’s initial jobless claims, the Producer Price Index (PPI) and the University of Michigan Consumer Confidence Index for more clues about the health of the U.S. economy.

Among the major sectors of the S&P 500, energy stocks led the decline, falling 2.9%.

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 34477 and 34724 positions.

Hong Kong Stocks 

Fundamental Analysis: 

The three major indices of Hong Kong stocks retreated collectively. The Hang Seng Index (HSI) closing down 0.93% at noon, Hang Seng TECH Index (HSTECH) down 1.92% and Hang Seng China Enterprises Index (HSCEI) down 1.36%.

The half-day net southbound capital inflow was HK$4.507 billion, the market turnover was HK$93.5 billion. 

On the market, heavyweight technology stocks fell in general, with Bilibili Inc. (9626.HK) down 7%, NetEase, Inc. (9999.HK) down 5%, JD.com, Inc. (9618.HK) and Alibaba Group Holding Limited (9988.HK) down about 3%, Baidu, Inc. (9888.HK) down 2% and Tencent Holdings Limited (0700.HK) down 1%.

Overnight, international crude oil and natural gas both plunged, and the oil and gas extraction sector fell generally.

Insurance stocks, Internet medical stocks, domestic housing stocks, Chinese medicine stocks and sporting goods stocks, which rose yesterday, retreated.

In addition, brokerage firms said high-grade beer sales have greater recovery flexibility, beer stocks rose.

Macau’s new regulations banning e-cigarettes came into effect today, and tobacco concept stocks collectively rose.

In addition, Macau optimized anti-epidemic measures for people entering Macau from the mainland, and gambling stocks collectively rose.

Education stocks, semiconductor stocks, gas stocks and other stocks strengthened.

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 at the 19517 and 20467 positions.

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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