U.S. Stocks 

Fundamental Analysis: 

U.S. stocks closed sharply higher on Wednesday, 4th May 2022, with the Federal Reserve announcing a 50 basis point rate hike as widely expected, and the S&P 500 recording its largest one-day percentage gain in nearly two years.

After the Fed’s statement, the stock market fluctuated first, then strengthened. The S&P 500 rose nearly 3%, the largest gain since 18th May 2020.

It is clear that the Fed understands the need to curb the price spike, and even if the Fed increases interest rate hikes, it still needs to deal with geopolitical tensions, the ongoing problem of the Covid-19 concerns, and corporate performance.

So, despite the Fed’s actions, one should watch for more volatility ahead.

As of Wednesday’s close, the Dow Jones Industrial Average rose 932.27 points, or 2.81%, to 34,061.06 points, the S&P 500 jumped 124.69 points, or 2.99%, to 4,300.17 points, and the Nasdaq jumped 401.10 points, or 3.19%, to 12,964.86 points.

Technical Analysis: 

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 33390-line today. If the Dow runs stably above the 33390-line, it will pay attention to the suppression strength of the 34088 and 34477 positions. If the Dow falls below the 33390-line, it will pay attention to the support strength of the 32975 and 32781 positions.

Hong Kong Stocks 

Fundamental Analysis: 

Yesterday, Hong Kong stocks fell unilaterally in the morning session, and then fluctuated at a low level in the afternoon.

By the close of trading, the Hang Seng Index (HSI) fell 1.10%, losing 21,000 points, the Hang Seng China Enterprises Index (HSCEI) fell 1.78%; the Hang Seng TECH Index (HSTECH) fell 3.29%.

On the market, the banking and capital goods sectors rose. China Railway, China Communications Construction rose more than 3%, while Healthcare, retail, software services, consumer goods, and semiconductor sectors fell.

Among popular technology stocks, JD Health International Inc. (6618.HK) fell nearly 13%, Alibaba Health Information Technology Limited (0241.HK) fell 7.48%, Bilibili Inc. (9626.HK) and Kuaishou Technology (1024.HK) fell more than 5%, and Meituan (3690.HK) fell over 4%.

On the news, according to the equity information disclosed by the HKEX, Shen Nanpeng, an independent non-executive director of Meituan and founding managing partner of Sequoia Capital, sold a total of 42.9572 million shares of Meituan on 27th and 29th April, cashing out about HK$6.227 million, and his shareholding in Meituan dropped from 3.98% to 3.19%.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 21450-line today. If HK50 can run stably below the 21450-line, then pay attention to the support strength of 20467 and 19517. If HK50 runs above the 21450-line, then pay attention to the suppression strength of 22127 and 22785.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 pays attention to the 13496-line today. If the A50 runs steadily below the 13496-line, pay attention to the support strength of the 13157 and 12733 positions. If the A50 runs above the 13496-line, it will open up further upward space. At that time, pay attention to the suppression of the 13983-line.

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Please make sure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with us. You should seek independent professional advice if you do not understand the risks disclosed by us herein.

Disclaimer  
While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.