U.S. Stocks 

Fundamental Analysis: 

U.S. stocks closed lower on Monday, 6th February 2023, as investors shifted their thinking after considering the possibility that the Federal Reserve may take longer to start cutting interest rates.

The market is monitoring Fed officials’ statements this week, including Chairman Powell’s speech on Tuesday, to see if there are any changes in the Fed’s stance following strong U.S. service sector activity and job growth in January.

U.S. Treasury Secretary Yellen said the U.S. economy may avoid a recession, as inflation is decreasing, and the labor market is strong.

After taking a beating in 2022, U.S. stocks recovered in 2023, led by growth giants, with hopes that the Fed would reduce its rate hike plans and ease pressure on stock valuations, but those hopes were short-lived.

Tesla bucked the trend by 2.5% after a U.S. jury ruled on Friday that CEO Musk and Tesla were not liable for misleading investors, with Musk tweeting in 2018 that he had secured the funds to take Tesla private.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow pays attention to the 34221-line today. 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 Hang Seng Index (HSI) opened 0.31% higher, with the Hang Seng TECH Index (HSTECH) up 0.47%.

Li Auto Inc. (2015.HK) gained nearly 2%, while Tencent Holdings Limited (0700.HK) and Semiconductor Manufacturing International Corporation (0981.HK) increased over 1%.

Biomedical stocks performed well, with Kintor Pharmaceutical Limited (9939.HK) up 3.35%.

New car makers were active, with XPeng Inc. (9868.HK) rising 1.49% and Ideal Car up 1.73%.

The Hong Kong IPO market has remained strong since the start of 2023.

The HKEx signed an MOU with the Saudi Stock Exchange Group to explore cooperation in financial technology, ESG, mutual listing and other areas of mutual benefit.

Insiders believe that improving the liquidity of Hong Kong stocks is crucial to attracting international companies to list in Hong Kong.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 pays attention to the 22127-line today. If HK50 can run stably above the 22127-line, then pay attention to the suppression strength of the two positions of 22785 and 23294.

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