U.S. Stocks 

Fundamental Analysis: 

The S&P 500 index of U.S. stocks closed slightly lower on Friday, 2nd December 2022, but major stock indexes broke away from their daily lows as the U.S. jobs report for November boosted expectations that the Federal Reserve will maintain its path of rate hikes to fight inflation.

Investors have been looking for signs of labor market weakness, particularly in payrolls, as a precursor to an accelerating cooling in inflation that would slow and eventually halt the Fed’s current cycle of rate hikes.

Stocks rallied at one point earlier this week after Fed Chairman Jerome Powell said he would slow the pace of interest rate hikes as early as December.

The three major stock indexes closed off their daily lows, when they were all down at least 1%. The Dow barely closed higher.

The Federal Reserve’s rate-setting Federal Open Market Committee (FOMC) will meet on 13th – 14th December, the last meeting of a tumultuous year in which the Fed has tried to choke off the highest inflation since the 1980s with record rate hikes this year.

Major stock indexes rose for a second straight week, with the S&P 500 up 1.13%, the Dow up 0.24% and the Nasdaq up 2.1%.

Growth stocks and technology giants fell, with Apple and Amazon down 0.34% and 1.43% respectively, pressured by concerns about rising interest rates, but then pared losses as U.S. Treasury yields retreated from highs touched earlier in the day.

The S&P 500 Growth Stock Index fell 0.29%. The technology stock index fell 0.55%, one of the worst performers among 11 major sectors. Ford Motor fell 1.56% as car sales fell in November.

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: 

Affected by the major reversal in U.S. stocks last Friday, the Hang Seng China Enterprises Index (HSCEI) rose by more than 5%.

Many places across the country announced the optimization of epidemic prevention and control.

Hong Kong stocks opened sharply higher, the Hang Seng Index (HSI) rose 2.93%, the Hang Seng China Enterprises Index (HSCEI) rose 3.26%, the Hang Seng TECH Index (HSTECH) rose 4.79%.

On the market, Chinese concept stocks in Hong Kong rose sharply, Baozun Inc. (9991.HK), Bilibili Inc. (9626.HK), Zhihu Inc. (2390.HK) are up 15% led by higher. Heavyweight technology stocks, JD.com, Inc. (9618.HK), Meituan (3690.HK), Tencent Holdings Limited (0700.HK), and Alibaba Group Holding Limited (9988.HK) are strong.

Automotive stocks rose, new energy vehicles led the rise, XPeng Inc. (9868.HK) rose nearly 14%.

Restaurant stocks, gambling stocks, sporting goods stocks, film entertainment stocks, domestic housing stocks and property management stocks have risen.

On the other hand, photovoltaic stocks, biotechnology, gas stocks were individually lower.

Clover Biopharmaceuticals, Ltd. (2197.HK) opened nearly 15% higher as the company’s Covid vaccine SCB-2019 was included for emergency use in China.

Zhejiang Leapmotor Technology Co., Ltd. (9863.HK) opened over 9% higher. Zhejiang Leapmotor Technology Co., Ltd. (9863.HK) was transferred to the list of underlying securities of Hong Kong Stock Connect under Shenzhen-Hong Kong Stock Connect from 5th December.

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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