U.S. Stocks 

Fundamental Analysis: 

The major U.S. stock indexes closed lower on Wednesday, 21st September 2022 in a tug-of-war during the session, falling sharply in the final 30 minutes as investors digested the U.S. Federal Reserve’s third mega-rate hike and its promise to keep raising rates in 2023 to fight inflation.

All three major indices fell more than 1.7%, with the Dow hitting its lowest closing level since 17th June, while the Nasdaq and S&P 500 closed at their lowest levels since July 1st and June 30th, respectively.

The Federal Reserve raised its policy rate target range for the third time by 75 basis points to 3.00%-3.25% at the end of its two-day meeting.

Rate hikes and anti-inflation efforts are also weighing on the U.S. economy, with the Fed’s latest forecast showing economic growth of just 0.2% this year, picking up to 1.2% in 2023.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 30495-line today. If the Dow runs steadily above the 30495-line, it will pay attention to the suppression strength of the two positions of 31000 and 31265. If the Dow runs steadily below the 30495-line, it will pay attention to the support strength of the two positions of 30083 and 29767.

Hong Kong Stocks 

Fundamental Analysis: 

U.S. stocks dived late on Wednesday, 21st September 2022 and closed sharply lower, with all three major stock indexes down more than 1.7%.

The Federal Reserve raised interest rates by 75 basis points and lowered its economic growth forecast.

The market is expected to raise interest rates by 75 basis points in November and 50 basis points in December.

Economists are worried that the Fed’s aggressive tightening will induce a full-blown recession by the end of this year or early next year.

After the Fed’s rate hike landed, the Hong Kong Monetary Authority also raised its benchmark interest rate by 75 basis points to 3.5%.

In the morning, Hong Kong’s major stock indices opened collectively lower, with the Hang Seng Index (HSI) down 1.97% at 18,080.93 points, a new low since November 2011.

The Hang Seng TECH Index (HSTECH) was down 2.98% at 3,626.1 points, while the Hang Seng China Enterprises Index (HSCEI) was down 1.95% at 6,144.67 points.

On the market, large technology continued its decline. Alibaba Group Holding Limited (9988.HK), Baidu Inc. (9888.HK), JD.com, Inc. (9618.HK), Kuaishou Technology (1024.HK), NetEase Inc. (9999.HK) are down more than 3%.

Agencies expect that by 2025, Apple may shift a quarter of the iPhone production to India, Apple concept stocks plunged, Sunny Optical Technology (Group) Company Limited (2382.HK) fell more than 7%.

The new car-making force opened collectively lower, XPeng Inc. (9868.HK) fell nearly 10%, NIO Inc. (9866.HK) fell more than 8%, Li Auto Inc. (2015.HK) fell more than 7%.

Biotechnology stocks, domestic insurance stocks, dairy stocks, oil stocks, building materials and cement stocks have fallen.

On the other hand, Internet medical stocks and education stocks partially rose, with Ping An Healthcare and Technology Company Limited (1833.HK) up 1%.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 19517-line today. If HK50 can run stably above the 19517-line, it will pay attention to the suppression strength of the 20467 and 21450 positions. If the HK50 runs below the 19517-line, it will 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 13157-line today. If the A50 runs steadily below the 13157-line, it will pay attention to the support strength of the two positions of 12945 and 12733. If the A50 runs above the 13157-line, it will open up further upward space. At that time, pay attention to the two positions of 13544 and 13887.

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