U.S. Stocks 

Fundamental Analysis: 

U.S. stocks rose on Tuesday, 16th August 2022, with the S&P 500 index up 0.19%, the essential consumer goods sector and non-essential consumer goods sector led by 1.21% and 1.09% gains, leading U.S. stocks to rise.

Meanwhile, the real estate sector and energy sector led by 0.42% and 0.34% losses, respectively.

U.S. housing starts fell to the lowest level in nearly a year and a half in July, weighed down by rising mortgage rates and construction material prices, suggesting the housing market may shrink further in the third quarter.

The slump in the housing market has brought fears of a broader recession back into focus. But other data on Tuesday showed that U.S. industrial production hit a record high in July despite the high interest rate environment, and the Federal Reserve is expected to continue its aggressive path of monetary policy tightening.

In another report, the Fed said manufacturing output rebounded 0.7% in July after falling 0.4% in June.

Economists previously forecast manufacturing output was expected to rise 0.2%. Compared with July 2021, output increased by 3.2%.

Manufacturing accounts for 11.9% of the U.S. economy, and even though spending is gradually shifting back to services, manufacturing is still supported by strong demand for goods.

Mining output rose 0.7%, continuing to be supported by oil and gas extraction.

Utilities output fell 0.8%. Manufacturing and mining output growth helped the overall industrial production index improve by 0.6% to a record high of 104.8. Industrial production was flat in June.

The strong manufacturing output contrasts with the sharp deterioration in business confidence shown in the regional manufacturing survey.

Technical Analysis: 

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow is concerned about the 33811-line today. If the Dow runs stably above the 33811-line, it will pay attention to the suppression strength of the two positions of 34088 and 34477. If the Dow is running steadily below the 33811-line, it will pay attention to the support strength of the two positions of 33584 and 33390.

Hong Kong Stocks 

Fundamental Analysis: 

Overnight, U.S. retail stocks rose sharply, Tencent’s Chinese concept stocks were generally lower.

Hong Kong stocks opened higher, the Hang Seng Index (HSI) rose 0.83%, the Hang Seng China Enterprises Index (HSCEI) rose 0.86%, the Hang Seng TECH Index (HSTECH) rose 0.99%.

On the market, yesterday’s decline in technology stocks rebounded, debunking rumors that Tencent intends to reduce its holdings.

Meituan (3690.HK) opened higher than 3%, NetEase, Inc. (9999.HK) rose more than 2%, Xiaomi Corporation (1810.HK), Alibaba Group Holding Limited (9988.HK), JD.com, Inc. (9618.HK), and Kuaishou Technology (1024.HK) are up, while Tencent Holdings Limited (0700.HK) opened flat.

Assisted reproductive policies are favorable, Jinxin Fertility Group Limited (1951.HK) rose more than 6%, power stocks continued yesterday’s rise, biomedical stocks, domestic insurance stocks, cell phone concept stocks have moved higher.

On the other hand, some drug stocks were lower, gas stocks, Internet medical stocks fell generally.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 20467-line today. If HK50 can run stably above the 20467-line, then pay attention to the suppression strength of 21450 and 22127. If HK50 runs below the 20467-line, then pay attention to the support strength of 19517 and 18606.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 focuses on the 13887-line today. If the A50 runs steadily below the 13887-line, it will pay attention to the support strength of the two positions of 13544 and 13157. If the A50 runs above the 13887-line, it will open up further upward space. At that time, pay attention to the two positions of 14371 and 14695.

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